STRUCTURAL APPROACH TO THE FORMATION OF THE BANK'S INDUSTRIAL LOAN PORTFOLIO ON THE BASIS OF SUSTAINABLE DEVELOPMENT

Abstract

In bank-centred economies, banks are the leading financial institutions, and therefore the implementation of the principles of sustainable development through the instruments of "green" and "sustainable" finance depends on them. Given the historical links between banks and industrial capital, and the modern role of banks in the development of industrial enterprises, the question of taking into account the principles of sustainable development in bank lending to industrial enterprises as subjects causing catastrophic damage to the environment becomes particularly relevant. The purpose of the article is to provide a methodological substantiation of the peculiarities of taking into account the principles of sustainable development in the formation of a bank's industrial loan portfolio. To achieve this goal, the following tasks were solved: to clarify the criteria for taking into account the principles of sustainable development in the formation of the bank's industrial loan portfolio; to propose a structural approach to the formation of the bank's industrial loan portfolio on the basis of sustainable development. The methodological basis of the study is a synthesis of theoretical and practical research in the field of green and sustainable finance. Practical implications. The results of the study show that it is expedient to deepen the development of sustainable lending to industrial enterprises, since the concept of sustainable development is broader than green financing and includes all aspects of sustainable development – environmental, economic and social. Value/ Originality. The article clarifies scientific approaches to the definition of the concept of "sustainable development", identifies key principles of sustainable development, reveals financial aspects of implementation of the principles of sustainable development in the socio-economic life of society and substantiates the expediency of introducing the principles of sustainable development in bank lending to industrial enterprises. The criteria for taking into account the principles and goals of sustainable development in the formation of the bank's industrial loan portfolio are clarified and a structural approach to the formation of the industrial loan portfolio on the basis of sustainable development is proposed.