Specifics of credit risk management based on green banking development in modern conditions of banking system evolution

Krylova O. V.; Horiacha O. I.; Shkurinskyi D. P.

Article

Issue:	2025 №4 (92)
Section:	Finances, accounting and taxation
UDK:	336.71:004
DOI:	https://doi.org/10.33271/ebdut/92.112
Article language:	Ukrainian
Pages:	112-120
Title:	Specifics of credit risk management based on green banking development in modern conditions of banking system evolution
Authors:	Krylova O. V., Dnipro University of Technology, Horiacha O. I., Dnipro University of Technology, Shkurinskyi D. P., Dnipro University of Technology
Annotation:	Methods. The results were obtained using the following methods: systematic analysis – when studying the conceptual foundations of green banking and its impact on credit risk; economic and statistical analysis – when assessing the dynamics of financial indicators of ESG-oriented and traditional banks; comparative analysis – when comparing risk profiles of various types of lending; structural and functional method – when investigating the portfolio of green financial products of Ukrainian banks; empirical research – when analyzing data from 21 banks subject to stress testing by the National Bank of Ukraine in 2025. Results. It was established that ESG-oriented banks demonstrate significantly better indicators: ROA 2.4% compared to 1.8% in traditional banks, NPL share 5.1% compared to 7.8%, operational efficiency 52.3% compared to 58.7%. It was revealed that green loans are characterized by lower risks – NPL for renewable energy loans is 3.2%, for energy efficiency loans 4.1%, while for traditional corporate loans 6.8%. Eight categories of green financial products were identified in Ukrainian banks' portfolios with a total volume of over 12 billion UAH. Significant differentiation of ESG maturity was found across banks by ownership type: banks with foreign capital – 78% have integrated ESG into risk management, state banks – 60%, private domestic banks – only 35%. Novelty. A five-component ESG-scoring model for credit risk assessment was developed, including environmental, social, governance, military adaptation, and financial components. A threetier ESG risk management system was substantiated with functional distribution across strategic, tactical, and operational levels. Unique characteristics of green banking operations under martial law and European integration processes were identified. Practical value. Methodological recommendations were formulated for integrating ESG criteria into credit underwriting processes, establishing an ESG monitoring system, and developing specialized green credit products. The results can be used by banking institutions to optimize credit risk management systems, by the National Bank of Ukraine to improve regulatory policy in sustainable finance, and by international organizations to assess progress in implementing ESG standards during post–conflict economic recovery.
Keywords:	«green» banking, Credit risk, ESG risks, Sustainable development, Green loans, Bank financial stability, ESG-scoring, Renewable energy, Energy efficiency, Martial law
File of the article:	EV20254_112-120.pdf
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