How banks can be empowered to finance social transformation
Billions are needed for investments in electromobility, in the sustainability of production processes, in more environmentally friendly heating systems and much more. Banks cannot handle these financing needs on their own, cannot bear the complete risk, or would require an unrealistic amount of additional equity in addition to significant liquidity. In our project report (Forschungsgutachten), we show how covered bonds, e.g. the Pfandbrief, and securitization can help to actively manage liquidity, credit risk, and equity in this situation.
Our study was funded by the Stiftungsprojekts Kapitalmarktunion, with the True Sale International as the business agent for the three foundations.
Photo by Waldemar Brandt on Unsplash