Bank Interest Margin and Green Lending Policy under Sunflower Management
學年 110
學期 2
出版（發表）日期 2022-07-14
作品名稱 Bank Interest Margin and Green Lending Policy under Sunflower Management
作品名稱（其他語言）
著者 Xuelian Li; Tinghui Lu; Jyh-Horng Lin
單位
出版者
著錄名稱、卷期、頁數 Sustainability 14(14), 8643
摘要 Sunflower management is a type of management style in which a chief executive officer (CEO) ignores information and attempts to confirm the board’s prior beliefs. The CEO’s accommodating behavior may reduce incentive conflicts but also stimulate diligent board monitoring. The present article aims to develop a contingent claim utility model to investigate the effect of green lending on bank spread behavior and board monitoring under sunflower management. The principal advantage of the contingent claim utility approach is the explicit treatment of uncertainty and diligent board monitoring, which play a prominent role in discussions of intermediary behavior. Additionally, banks may earn goodwill from a green lending policy, thus yielding environmental improvements. In this study, we explore the goodwill effect on the bank’s interest margin determination and board monitoring. We use the comparative statistics method to analyze the result of changes in the theoretical model’s exogenous parameters. Moreover, we use empirical data as a baseline for numerical simulations to explain the comparative statistics. Our main findings are that increasing green lending reduces interest margins and enforces diligent board monitoring. The increase in goodwill garnered from improvements to the bank’s green lending reputation was found to enhance the interest margins but ease active board monitoring. From these results, we outline implications such as implementing intangible goodwill asset accumulation from bank customers’ green awareness via green lending publicity that increases the bank interest margin under sunflower management, thereby affecting banking stability.
關鍵字 green lending policy; bank interest margin; sunflower management; goodwill; capital regulation
語言 en
ISSN 2071-1050
期刊性質 國外
收錄於 SSCI Scopus
產學合作
通訊作者
審稿制度 是
國別 CHE
公開徵稿
出版型式 ,電子版
SDGS 消除貧窮,良好健康和福祉,尊嚴就業與經濟發展,減少不平等,永續城市與社區