Research urges ECB to consider establishing ‘fossil bank’
Entity would play similar role to ‘bad banks’ established after financial crisis
The European Central Bank should consider establishing a ‘fossil bank’, according to new research from Reclaim Finance, a not-for-profit organisation.
In the report, Fossil Assets: the new subprimes, the organisation suggests a fossil bank could be used to buy up financial institutions’ oil, gas and coal loans in return for ceasing business with carbon-heavy industries.
“A specific bad bank, financed by the ECB’s asset purchases, would buy back a significant portion of fossil assets from banks
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