SOAS Research Online

A Free Database of the Latest Research by SOAS Academics and PhD Students

[skip to content]

Dikau, Simon and Volz, Ulrich (2020) Central Bank Mandates, Sustainability Objectives and the Promotion of Green Finance. London: SOAS Department of Economics Working Paper No. 232.

[img]
Preview
Text - Published Version
Download (1MB) | Preview

Abstract

This paper examines the extent to which addressing climate-related risks and supporting sustainable finance fit into the current set of central bank mandates and objectives. To this end, we conduct a detailed analysis of central bank mandates and objectives, using the IMF’s Central Bank Legislation Database, and compare these to current arrangements and sustainability-related policies central banks have adopted in practice. To scrutinise the alignment of mandates with climate-related policies, we differentiate between the impact of environmental factors on the conventional core objectives of central banking and a potential supportive role of central banks with regard to green finance and sustainability. Of the 135 central banks in our sample, only 12% have explicit sustainability mandates, while another 40% are mandated to support the government’s policy priorities, which in most cases include sustainability goals. However, given that climate risks can directly affect central banks’ traditional core responsibilities, most notably monetary and financial stability, even central banks without explicit or implicit sustainability objectives ought to incorporate climate-related physical and transition risks into their core policy implementation frameworks in order to efficiently and successfully safeguard macro-financial stability.

Item Type: Monographs and Working Papers (Working Paper)
SOAS Departments & Centres: Departments and Subunits > Department of Economics
ISSN: 17535816
Copyright Statement: © 2020 the Author(s).
Date Deposited: 20 Apr 2020 12:13
URI: https://eprints.soas.ac.uk/id/eprint/32598

Altmetric Data

There is no Altmetric data currently associated with this item.

Statistics

Download activity - last 12 months
Downloads since deposit
622Downloads
639Hits
Accesses by country - last 12 months
Accesses by referrer - last 12 months

Repository staff only

Edit Item Edit Item