Gender diversity in bank boardrooms and green lending: Evidence from euro area credit register data

49 Pages Posted: 8 Apr 2022

See all articles by Alessio Reghezza

Alessio Reghezza

European Central Bank (ECB)

Leonardo Gambacorta

Bank for International Settlements (BIS); Centre for Economic Policy Research (CEPR)

Livia Pancotto

University of Strathclyde

Martina Spaggiari

European Central Bank

Date Written: March 29, 2022

Abstract

Do female directors in banks’ boards influence lending decisions towards more/less polluting firms? By using granular credit register data matched with information on 539,928 firm-level greenhouse gas (GHG) emission intensities, we isolate credit supply and find that banks with more gender-diverse boards provide less credit to browner companies. This evidence is robust when we differentiate among different types of GHG emissions and control for endogeneity concerns. In addition, we also show that female director-specific characteristics matter for lending behaviour to more/less polluting firms as better-educated directors grant lower credit volumes to more polluting firms. Finally, we document that the “greening” effect of the female members in banks’ boardrooms is stronger in countries with more female climate-oriented politicians.

Keywords: GHG emissions; Gender; Board diversity; Credit registry; Bank lending

JEL Classification: G01; G21; G30; Q50

Suggested Citation

Reghezza, Alessio and Gambacorta, Leonardo and Pancotto, Livia and Spaggiari, Martina, Gender diversity in bank boardrooms and green lending: Evidence from euro area credit register data (March 29, 2022). Available at SSRN: https://ssrn.com/abstract=4069428 or http://dx.doi.org/10.2139/ssrn.4069428

Alessio Reghezza (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Leonardo Gambacorta

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Livia Pancotto

University of Strathclyde ( email )

16 Richmond Street
Glasgow 1XQ, Scotland G1 1XQ
United Kingdom

Martina Spaggiari

European Central Bank ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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