What is the role State-guaranteed loans (SGLs) play in redirecting resources towards greener economic activities (i.e., facilitating the climate transition process)? To address this question, we utilize a unique pan-European credit register dataset (AnaCredit), which is matched with supervisory bank data, firm-level CO2 emission data, and firm-level financial information.
We establish four main findings. First, European banks perceive exposures to green companies as riskier than those to brown companies; we refer to this difference as ”green-transition-risk.” Second, we find that European banks, leveraging on SGLs granted during the COVID-19 outbreaks, have redirected resources towards greener economic activities. As a result, they have increased the share of green loans in their portfolios and partially shifted the implicit “green-transition-risk” onto European governments and citizens. Third, our analysis reveals that banks have shown a preference for granting SGLs to large-green firms rather than small-green firms.
Bruno Buchetti is an Assistant Professor of Financial Accounting at the University of Padua, Italy. He also serves as an adjunct professor at Toulouse Business School (TBS), where he teaches Inter- national Corporate Governance.
Previously, he worked at the European Central Bank in Frankfurt am Main, Germany, as a Supervision Analyst in the “COI - Centralized On-Site Inspections” di- vision of the Single Supervisory Mechanism (SSM). He has also been employed at Credit Suisse AG in Zurich, Switzerland, as a bank inspector.
Dr. Buchetti earned his PhD in Management & Innovation from UCSC University in Milan, Italy. He has a BSc in Economics & Business Administration and an MSc in Banking & Finance (earned with summa cum laude distinction). During his MSc studies, he was awarded a scholarship for academic merit and participated in an exchange program at Stanford University in California, USA.
He is the author of “Corporate Governance and Firm Value in Italy: How Directors and Board Members Matter” and “Corporate Governance in the Banking Sector: Theory, Supervision, ESG, and Real Banking Failures,” both published by Springer Nature in 2021 and 2022, respectively. His primary research interests center on corporate governance, financial accounting, and banking.
This seminar will be held in English.
Major Information: Lorenzo Dal Maso (lorenzo.dalmaso@unibo.it).