CEPR Discussion Paper – “There is No Planet B”, but for Banks There are “Countries B to Z”: Domestic Climate Policy and Cross-Border Bank Lending
Author(s): Emanuela Benincasa, Gazi Kabas, Steven Ongena Date: October 2021 Abstract: We provide evidence that banks increase cross-border lending in response to higher climate policy stringency in their home countries. Saturating with granular set of fixed effects and including a rich set of control variables, we show that the increase in cross-border lending is not driven[…]