(Finance) – Le securitisations of loans towards less sustainable economic activities (the so-called “browns”) are grown more compared to those towards more sustainable activities, suggesting a preference of banks to keep loans towards relatively “greener” sectors on their balance sheets. This is the conclusion of a study published by Bank of Italy and referring to the green securitization market originated by Italian banks in the period 2010-2019
The researchers point out that at the moment There are neither univocal definitions nor universally accepted methodologies to identify so-called “green securitisations”. From a theoretical point of view, a securitization can be labeled as green if the collateral of the securitization is green or if the proceeds from the transaction are dedicated to green activities and projects.
Evaluate whether a given securitization is backed by green collateral however, it is not always feasible and evaluating how the proceeds of the operation will be used in practice is even more difficult.