Search
00
GBAF Logo
trophy
Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

Subscribe to our newsletter

Get the latest news and updates from our team.

Global Banking & Finance Review®

Global Banking & Finance Review® - Subscribe to our newsletter

Company

    GBAF Logo
    • About Us
    • Profile
    • Privacy & Cookie Policy
    • Terms of Use
    • Contact Us
    • Advertising
    • Submit Post
    • Latest News
    • Research Reports
    • Press Release
    • Awards▾
      • About the Awards
      • Awards TimeTable
      • Submit Nominations
      • Testimonials
      • Media Room
      • Award Winners
      • FAQ
    • Magazines▾
      • Global Banking & Finance Review Magazine Issue 79
      • Global Banking & Finance Review Magazine Issue 78
      • Global Banking & Finance Review Magazine Issue 77
      • Global Banking & Finance Review Magazine Issue 76
      • Global Banking & Finance Review Magazine Issue 75
      • Global Banking & Finance Review Magazine Issue 73
      • Global Banking & Finance Review Magazine Issue 71
      • Global Banking & Finance Review Magazine Issue 70
      • Global Banking & Finance Review Magazine Issue 69
      • Global Banking & Finance Review Magazine Issue 66
    Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

    Global Banking & Finance Review® is a leading financial portal and online magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management.
    Copyright © 2010-2026 GBAF Publications Ltd - All Rights Reserved. | Sitemap | Tags | Developed By eCorpIT

    Editorial & Advertiser disclosure

    Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

    Home > Headlines > Euro zone banks tilting loan pricing towards greener firms, ECB blog says
    Headlines

    Euro zone banks tilting loan pricing towards greener firms, ECB blog says

    Published by Global Banking & Finance Review®

    Posted on November 10, 2025

    2 min read

    Last updated: January 21, 2026

    Euro zone banks tilting loan pricing towards greener firms, ECB blog says - Headlines news and analysis from Global Banking & Finance Review
    Tags:sustainabilitySurveyfinancial management

    Quick Summary

    Euro zone banks offer favorable loan terms to green firms, influenced by ECB's climate risk management strategies. Polluters face stricter conditions.

    Table of Contents

    • Impact of Climate Performance on Loan Pricing
    • Banks' Climate Risk Strategies
    • Survey Insights on Credit Standards
    • Trends in Mortgage Financing

    Euro zone banks tilting loan pricing towards greener firms, ECB blog

    Impact of Climate Performance on Loan Pricing

    FRANKFURT (Reuters) -Euro zone banks are offering loans on more favourable terms to companies with a better climate performance and may be punishing polluters, according to a blog post published by the European Central Bank on Monday.

    Banks' Climate Risk Strategies

    The ECB has been pushing banks for years to disclose and manage their climate risk, using a range of tools like binding supervisory orders, fines and collateral repricing.

    Survey Insights on Credit Standards

    The finding is significant as the European economy relies heavily on bank finance for investment, in contrast with the United States, where capital markets are more widely used to generate funding.

    Trends in Mortgage Financing

    "Banks offer a 'climate discount' in their risk assessment to green firms and those in transition," the blog said, analysing responses in the ECB's quarterly Bank Lending Survey. "Also, they seem to charge a 'climate risk premium' for high-emitting firms."

    A net 20% of banks surveyed said that they expect to ease credit standards for green firms and 13% plan to do the same for companies in transition. Meanwhile a net 35% said that climate risk would result in tighter lending conditions for high-emitting companies.

    Firms facing physical risk from climate change can also expect more expensive financing but transition risk is not expected to have meaningful impact.

    A similar trend is happening for mortgages.

    High-energy-performance buildings have an increasingly dampening impact on credit standards and banks also see increasing demand to finance such units.

    (Reporting by Balazs Koranyi; Editing by Emelia Sithole-Matarise)

    Key Takeaways

    • •Euro zone banks favor green firms with better loan terms.
    • •ECB encourages banks to manage climate risk.
    • •High-emitting firms face stricter lending conditions.
    • •Green firms receive a 'climate discount' on loans.
    • •Demand for financing high-energy-performance buildings is rising.

    Frequently Asked Questions about Euro zone banks tilting loan pricing towards greener firms, ECB blog says

    1What is climate risk?

    Climate risk refers to the potential financial losses or impacts that businesses may face due to climate change and environmental factors, including extreme weather events and regulatory changes aimed at mitigating climate change.

    2What is a climate discount?

    A climate discount is a reduction in loan pricing or interest rates offered by banks to companies that demonstrate strong climate performance or are transitioning to greener practices.

    3What is a climate risk premium?

    A climate risk premium is an additional charge applied to loans for companies that are high emitters of greenhouse gases, reflecting the increased risk associated with their environmental impact.

    4What is the ECB's Bank Lending Survey?

    The ECB's Bank Lending Survey is a quarterly report that gathers information from banks about their lending practices, credit standards, and demand for loans, providing insights into the financial landscape.

    5What are green firms?

    Green firms are companies that prioritize environmentally sustainable practices, often focusing on reducing their carbon footprint and implementing eco-friendly technologies in their operations.

    Why waste money on news and opinion when you can access them for free?

    Take advantage of our newsletter subscription and stay informed on the go!

    Subscribe

    Previous Headlines PostUkraine's Kyivstar adds backup power as Russian strikes strain power grid, CEO says
    Next Headlines PostFactbox-Lukoil international assets facing disruptions from US sanctions
    More from Headlines

    Explore more articles in the Headlines category

    Image for France to rally aid for Lebanon as it warns truce gains remain fragile
    France to rally aid for Lebanon as it warns truce gains remain fragile
    Image for Exclusive-US aims for March peace deal in Ukraine, quick elections, sources say
    Exclusive-US aims for March peace deal in Ukraine, quick elections, sources say
    Image for Ukraine's Zelenskiy calls for faster action on air defence, repairs to grid
    Ukraine's Zelenskiy calls for faster action on air defence, repairs to grid
    Image for Olympics-Italy's president takes the tram in video tribute to Milan transport
    Olympics-Italy's president takes the tram in video tribute to Milan transport
    Image for Goldman Sachs teams up with Anthropic to automate banking tasks with AI agents, CNBC reports
    Goldman Sachs teams up with Anthropic to automate banking tasks with AI agents, CNBC reports
    Image for Analysis-Hims' $49 weight-loss pill rattles investor case for cash-pay obesity market
    Analysis-Hims' $49 weight-loss pill rattles investor case for cash-pay obesity market
    Image for Big Tech's quarter in four charts: AI splurge and cloud growth
    Big Tech's quarter in four charts: AI splurge and cloud growth
    Image for Exclusive-Bangladesh PM front-runner rejects unity government offer, says his party set to win
    Exclusive-Bangladesh PM front-runner rejects unity government offer, says his party set to win
    Image for Azerbaijan issues strong protest to Russia over lawmaker's comments on Karabakh trial
    Azerbaijan issues strong protest to Russia over lawmaker's comments on Karabakh trial
    Image for UK police search properties in probe into Mandelson over Epstein ties
    UK police search properties in probe into Mandelson over Epstein ties
    Image for Factbox-What you need to know about Portugal's presidential runoff
    Factbox-What you need to know about Portugal's presidential runoff
    Image for Socialist seen beating far-right rival for Portuguese presidency with conservative help
    Socialist seen beating far-right rival for Portuguese presidency with conservative help
    View All Headlines Posts