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Title: ECONOMIC-LEGAL REGULATION OF BANK LIQUIDITY IN THE CONTEXT OF ENVIRONMENTAL AND CLIMATE CHANGE

Year

2025

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506

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Title

ECONOMIC-LEGAL REGULATION OF BANK LIQUIDITY IN THE CONTEXT OF ENVIRONMENTAL AND CLIMATE CHANGE

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Authors

Halyna Matviienko; Serhii Shatrava; Oleksandr Mozghovyi; Isa Musa Ohly Tanryverdiiev; Oksana Butkevych; Sergii Shkliar

DOI

10.5593/sgem2025/5.1/s22.085

DOI Issue

10.5593/sgem2025/5.1

ISSN

1314-2704

ISBN

978-619-7603-85-9

Language

English

Volume

Issue

5.1

Editor

• Prof. Dr. hab. oec. Baiba Rivza, LATVIA• Prof. DSc. Ildiko Tulbure, GERMANY• Prof. DSc. Oleksandr Trofymchuk, UKRAINE

Scientific Area

Economics of Sustainability, Policies & Environmental Legislation

Abstract/ Foreword

The article highlights the critical role of liquidity management in banks and underscores the need for legislative-level changes in regulation and the assessment of climate risks in banks to achieve financial stability. Banks face growing expectations from regulators and society to integrate environmental, social, and governance (ESG) criteria into their business practices, as well as strengthen liquidity and control over climate risks. The article highlights the importance of prioritising the correct regulation of climate risks and liquidity for central banks and financial regulators, particularly in times of unstable geopolitical situations. The priority of such a task should be comprehensive, encompassing stress testing, the creation of a digital platform for climate data, the development of new methodologies for risk assessment and financial products that are resilient to climate change, and increasing the transparency and openness of stress testing results. The purpose of this article is to examine the current state of legal regulation of climate risks and liquidity risks in the European banking system and to outline the primary directions for improving regulation to ensure the stability of the financial system. The current legal framework for assessing climate risks and liquidity risks in the banking system is analysed. New directions in strategic banking regulation, in the context of climate risks, are identified. Proposed steps are necessary to ensure the banking sector's contribution to sustainable economic growth. In this regard, it has been proven that cooperation among banking institutions, regulators, and scientific institutions can create synergy to ensure the stability and sustainable liquidity of banking institutions. The need for implementing special climate stress scenarios and modelling climate risks is identified. When writing the article, system-functional, dialectical, formal-legal, comparative, and analytical methods were primarily employed.

References (click to open)

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[2] Qiaoqi Lang, Feng Ma, Nawazish Mirza, Muhammad Umar. (2023). The interaction of climate risk and bank liquidity: An emerging market perspective for transition to low carbon energy, Technological Forecasting and Social Change, Volume 191,2023, 122480, ISSN 0040-1625, https://doi.org/10.1016/j.techfore.2023.122480.
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conference

Url

https://doi.org/10.5593/sgem2025/5.1/s22.085

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ECONOMIC-LEGAL REGULATION OF BANK LIQUIDITY IN THE CONTEXT OF ENVIRONMENTAL AND CLIMATE CHANGE

Proceedings Тitle

Proceedings of 25th International Multidisciplinary Scientific GeoConference SGEM 2025, Volume 25, Issue 5.1

Note

25th International Multidisciplinary Scientific GeoConference SGEM 2025, Volume 25, Issue 5.1, 29 June - 6 July, 2025

Type

Proceedings Paper

Publisher

STEF92 Technology

Series

International Multidisciplinary Scientific GeoConference Surveying Geology and Mining Ecology Management, SGEM

Organization

SWS Scholarly Society; Acad Sci Czech Republ; Latvian Acad Sci; Polish Acad Sci; Russian Acad Sci; Serbian Acad Sci and Arts; Natl Acad Sci Ukraine; Natl Acad Sci Armenia; Sci Council Japan; European Acad Sci, Arts and Letters; Acad Fine Arts Zagreb Croatia; Croatian Acad Sci and Arts; Acad Sci Moldova; Montenegrin Acad Sci and Arts; Georgian Acad Sci; Acad Fine Arts and Design Bratislava; Russian Acad Arts; Turkish Acad Sci.

Pages

675-684

Date

29 June - 6 July, 2025

Online Source Type

website

Digital Source Type

10520

Keywords

environmental and climate change, banking regulation, European politics, finance, law