Sustainability and Green Finance: Banking System in Turkey

Today, one of the main factors that increases the importance of sustainability and green finance is the scarcity of resources that meet needs. Sustainability has important benefits in reducing environmental erosion, such as acting as a carrier for the transportation of existing resources to future generations. Green finance is the use of financial resources in projects that embrace climate change aspects in the creation of a sustainable environment. At this point, banks, which are at the center of the financial system, are at a key point in terms of both maintaining sustainability and directing economic resources to the right areas. In the study, existing sustainability and green finance legislation studies in Turkey were followed. In addition, an attempt has been made to compile the studies carried out by banks operating in Turkey on sustainability and green finance. As a result of the study, it was seen that significant regulations were not made in credit policies in the banking system in Turkey, especially in terms of reducing environmental pollution. At the same time, it is seen that public banks include more sustainability and green financing in their policies than private and foreign capital banks.