The incoming supervisor of banks is expected to publish guidelines for banks to require them to include environment risk, especially when granting credit, as part of overall financial risk under consideration, said Bank of Israel Banking Supervision Department senior economist Gal Landau today.
Landau made the comment at a seminar on environmental risk management at financial institutions organized by the Ministry of the Environment. She said, “The financing of bodies with potential exposure to environmental risk carries a credit and image risk.”
The Banking Supervision Department believes that environmental risk is an integral part of the risks that banks should weigh and include in their banking. Landau added that the Banking Supervision Department had studied the issue during the past year, met with environmental organizations, and studied the regulatory situation in Western countries. She said the Banking Supervision Department planned to institute Western regulations in this matter.
Minister of the Environment Gideon Ezra said that he considered the ministry to have an economic character, and that he would foster the installation of environmental technologies.
Ezra revealed that he had signed an agreement with the Investment Promotion Center to include environmental considerations when granting state support to enterprises. “A factory seeking state support should know that one of the state’s considerations is the environment. Enterprises should therefore plan their activities accordingly.”
Today, polluting factories receive government aid.
Published by Globes [online], Israel business news - www.globes.co.il - on December 7, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006