Sustainable investments make a growing and important share of total assets under management in the fund management industry. Except for investor preferences, a significant driver of demand for sustainable assets will also be the new European plan for sustainable finance. The goal of the plan is to reorient capital towards a more sustainable economy by incentivizing financial intermediaries to offer more sustainable investment products. This paper aims to assess the EU plan for sustainable finance and explain its implications on the financial system and the economy of a small member state, using Croatia as an example. In addition to that, we also present policy advice for policymakers that want to use the European plan for sustainable finance to make their economy (more) sustainable. We find that although the plan is broad and ambitious, to ensure its overall success some additions and tweaks at the national level could be needed. First, including pension plans as one of the biggest investors in many EU member states would increase overall plan impact. Second, national-level regulation about non-financial (sustainability) data for listed companies might be beneficial. Without such regulation, obtaining data directly from corporations might result in non-comparable reports or missing data. In the second step, this could undermine the plan's overall goals.
Ciljevi su ovog rada objasniti pojam bankarstva u sjeni i razloge zbog kojih je iz perspektive financijske stabilnosti važno steći spoznaje o subjektima ili aktivnostima koji se mogu opisati na taj način. U tom kontekstu provedena je analiza domaćeg financijskog sustava i poslovnih praksi kako bi se ocijenila važnost banaka u sjeni u Hrvatskoj i identificirali mogući sistemski rizici iz tog izvora. Rezultati analize pokazuju da visina udjela nebankovnih financijskih institucija te ročna struktura njihovih obveza i potraživanja u ovom trenutku nisu rizik koji bi mogao ugroziti financijsku stabilnost, dok se među najrizičnijim institucijama izdvajaju "ostali financijski posrednici" koji uključuju faktoring društva i društva za lizing.
Crisis management in the context of public institutions is particularly important, due to the extremely large possible impact of the consequences of systemic crises on society as a whole. Suboptimal or too slow decisions of public institutions usually affect a much wider set of people, entities, and economic and financial developments than when it comes to crisis management in individual companies, even if they are systemically important. This paper focuses on the activities of the Croatian National Bank and the Croatian Financial Services Supervisory Agency in dealing with the crisis caused by the coronavirus pandemic and presents the most important activities of the government, government agencies, and commercial banks that have had an impact on financial stability. The analytical part of the paper presents the effect of trading suspension on the Zagreb Stock Exchange on 12th March 2020 and its implications on the market. Although it is still too early to make final assessments, given the course of the pandemic, the available data suggest that the activities of domestic institutions have so far been effective in maintaining financial stability in Croatia.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.