Banks have a vital role in the society-wide green transition. However, the field of green finance is relatively unexplored in academia. Our study aims to extend the knowledge of green corporate loans by investigating what soft and hard information Swedish banks use to overcome the information asymmetry in the lending decision and what role the information plays. Based on fragmented literature, a tentative model is created, and used to form the study. The study adopts a qualitative research strategy and semi-structured interviews were held with respondents from the four largest banks in Sweden. Using the collected data, the tentative model was corroborated and adjusted, resulting in a finalised model. The study found that the following information components are used to evaluate green corporate loans: financial statements, collaterals, credit score, owners, character, micro and macro analysis, ESG approach and green criteria. Although most emphasis is put on hard information, soft information is also necessary for banks to make a lending decision. The study has multiple practical contributions relating to challenges posed by soft information, and the loan assessment. Theoretically, the study contributes with a baseline for future studies investigating the topic of green corporate loans.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-506222 |
| Date | January 2023 |
| Creators | Rydén, Maria, Zemariam Ermias, Lourdes |
| Publisher | Uppsala universitet, Företagsekonomiska institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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