SUSTAINABLE BANKING

Which of the following is NOT a sustainable development goal targeted to be achieved by 2030?

• Gender equality

• Zero hunger

• Space research

• Good health and wellbeing

How has the Covid-19 pandemic undermined the progress made on sustainable development?

• By its devastating effect on health

• By introducing remote learning at schools

• By increasing inequalities

• All the answers are correct

How can banks contribute to the achievement of the Sustainable Development Goals?

• By financing environmental projects

• By promoting socially responsible products

• By offering microcredit to women

• All the answers are correct

Which of the following is NOT a characteristic of a sustainable bank?

• It invests mostly on speculative transactions

• It focuses on the economic benefits, but also on the people and the planet

• It has a more active role against financial exclusion

• It is more transparent than a conventional bank

Which of the following is true about ESG ratings agencies?

• They provide information about the financial performance of corporations

• They consider non-investor stakeholders interests, such as employees, suppliers, customers, local community or the environment

• They have become less important in the last years

• MSCI is the only ESG rating agency that currently exists

Sustainable banks:

• Attract less deposits

• Are less valued by investors

• Have less loyal customers

• All the answers are false

Sustainable banks can have lower risk than conventional banks because:

• They are more transparent and have better moral standards

• Their level of loan loss provisions is higher

• They provide less credit

• Financial stability is not essential for implementing sustainable strategies

Evidence provided in this session shows that sustainable banks are in general:

• More efficient than conventional banks

• Less efficient than conventional banks

• As efficient as conventional banks

• Not efficient at all

Why can sustainable banks provide more credit than conventional banks?

• Because they have a more active role against financial exclusion

• Because sustainable activities in general improve their financial conditions

• Because they are more focused on maximising value for all their stakeholders

• All the answers are correct

Sustainable practices:

• Can initially harm bank profitability

• Always reduce the reputation of banks

• Always reduce the market value of banks

• Are not crucial in the financial sector