Many central banks look to go green, survey finds

Tuesday 18 May 2021 11:53 CET | News

A survey conducted by HSBC has shown that 57 central banks, with assets worth USD 3.8 trillion, are factoring social and environmental criteria into decision-making or are considering doing so.

Central banks are increasingly interested in environmentally sound and socially responsible investment, with 43% of respondents to the HSBC Reserve Management Trends survey for 2021 saying they had bought green bonds.

Just 25% of institutions were not embarking on the trend, citing a lack of compatibility with mandates as the main reason. Climate change is a key element of the strategic review currently underway at the ECB, and monetary authorities elsewhere are also addressing the topic.

At 43%, the share of institutions holding green bonds was higher than for inflation-linked bonds or mortgage-backed securities. Interest in green bonds was particularly strong among high-income countries, the HSBC-sponsored poll found.

Central banks have responded to the COVID-19 pandemic with record stimulus, and the survey found reserve managers cited the low-yield environment as their biggest challenge. Particularly in high-income countries, they were considering investing in new asset classes. In the long run, digital currencies were seen as having an impact on management of reserves, the survey said.

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Keywords: central bank, survey, green finance, research, banks
Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
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Banking & Fintech