Green Loans: Commission Calls For Advice From EBA

The European Commission has written to the European Banking Authority, enclosing a Call for Advice on Green Loans.

Key aspects of the Commission's request are the following (with an emphasis on the retail and SME markets):

• An overview of current market practices and the prevalence of green loans in the banking market. This should include information on the market segments in which retail borrowers and SMEs are most active and where they might benefit from gaining access to green loans. The Commission is particularly interested in the EBA's views on the most common methods used to assess whether loans qualify as 'green', and the credibility of those methods. EBA feedback is also being sought on potential gaps in the green loan market i.e. whether there is a lack of bank lending in certain key 'green' sectors, and any regulatory barriers to the development of the green loan market.