Towards the Greening of Banking: A Comparison of the Polish and Czech Financial Markets

Abstract

Abstract The role of the banking system in promoting and implementing the Sustainable Development Goals in Europe has recently become very significant. As an important part of the financial sector, green banking helps to achieve the goals of sustainable development, which, in times of global financial, economic, climate, and social crises and of war, is very important. The authors aim to present the general approach to ‘green banking’ in Poland and the Czech Republic as represented by the banking sectors themselves and the national regulatory and supervisory authorities, with reference to the EU legal framework. They posit that ‘green banking’ is an increasingly important trend in the development of the Polish and Czech financial markets and conclude that EU regulations are the biggest driver of change in green finance, resulting in an increased awareness of environmental, social, and corporate governance (ESG) factors. What is required, however, is greater systemic involvement of the institutions that constitute the financial safety net, especially central banks. The research has used a theoretical and dogmatic-legal method, based on content analysis and the availability of source information, i.e. theoretical-legal publications, overview sector reports, and, in particular, legal regulations key to the topic.