Green Lending at Syrian Private Banks: Do They Really Care?

Abstract

This study investigates whether Syrian private banks integrate issues related to environmental sustainability in their credit risk assessment of borrowers. We distribute questionnaires to credit officers and internal and external auditors of both conventional and Islamic Syrian private banks. The results indicate that Syrian private banks pay no attention to environmental issues when making their lending decisions. Also, our results suggest insignificant differences between Islamic and conventional banks concerning green lending. We recommend that more attention be paid to environmental sustainability in the credit risk assessment process and that banks disclose their environmental sustainability practices to establish an ecosystem that supports sustainability.