The Current Situation and Development Perspectives of Green Banking in the Republic of Serbia

Banks, as institutions with an exclusive license for deposit and credit operations, play a key role in financing the retail and corporate sector. Keeping in mind the problem of global warming, banks have adopted a proactive approach in order to contribute to the Paris Agreement goal. In addition to activities to improve their corporate eco-efficiency, banks confirm their environmental responsibility by introducing new banking products. Their role is especially evident in less developed countries and emerging markets. By applying the comparative and content analysis method, the paper analyses the green banking practice in the Republic of Serbia in order to assess the current situation and further development prospects. The analysis shows that only a few banks have high standards and an integrated approach to sustainability, which, among other things, includes clearly defined environmental and ethical requirements, as well as an adequate environmental risk assessment. The improvement of the environmental responsibility of banks in the coming period depends on a regulatory framework that will stimulate this banking practice, as well as on the bank employees and clients’ awareness about the importance of green banking and its advantages.