GREEN BANKING: CHALLENGES AND PROSPECTS FOR DEVELOPMENT IN UKRAINE

Abstract

The article is devoted to the study of the essence of the concept of "green banking", identifying problems and outlining the prospects for its development in Ukraine in the current conditions of socio-economic development. The work focuses on the basic principles of "green banking" (environmental and social responsibility, transparency and accountability, long-term perspective, innovation, partnership). It is noted that green banking can be equated with socially responsible banking with a business philosophy that goes beyond the traditional pursuit of maximum profit and focuses on three main components: economic benefit, social responsibility and environmental sustainability. The aspects that characterize modern "green" banking are defined, namely: green loans and investments; investing in projects with positive social and environmental impact; financial transparency, i.e. openness of information about the environmental consequences of financial transactions; promoting the formation of an ecological culture in society. The key areas of activity in the field of green banking, which include direct financing of environmental projects and the implementation of environmental practices within banks, are considered. It is noted that domestic financial institutions are already implementing elements of green banking, namely the creation of "green" offices. The main factors that complicate the implementation of environmentally responsible financial practices are considered (imperfection of the legislative framework; lack of standards for "green" projects; low level of awareness; financial constraints; weak infrastructure; competition with traditional financial products; problems with monitoring and reporting; political and economic instability; climate risks). The prospects and advantages of implementing green banking in domestic practice are outlined. It is concluded that green banking in Ukraine is not just a trend, but a strategically important industry that has great potential for development and growth and contributes to the sustainable development of the country, provided there is cooperation between the state, business and civil society. This includes the development of an effective regulatory framework, support for innovation and raising public awareness.