HOME >> MEDICINE >> NEWS
Should banks be liable for pollution caused by companies that borrow from them?

His team of lawyers, economists and financial analysts finds that:

  • The UK's 1995 Environment Act appears to exempt lenders from liability for environmental damages caused by insolvent borrowers. But this finding has yet to be tested in the courts and, according to the team's survey of the UK banking sector, banks are a little concerned that they could still be held liable.

  • There is no consensus among UK banks whether they would respond to environmental liability legislation by raising or lowering their margins. And while banks have gone a long way to integrating assessment of environmental risks into their overall risk assessment procedures, the survey reveals that there is a concern that the costs of obtaining adequate information on risks is inhibiting the creation of environmental insurance products.

  • Analysis from the US, where environmental liability has been extended to banks, shows that it has a significant negative impact on their willingness to lend to environmentally risky industries. In the past, when environmental liability had been introduced for firms but not yet extended to banks, firms had incentives to use bank debt since this gave some protection to equity owners. When liability was extended to lenders, it significantly reduced their willingness to lend to firms.

    NR 67-99

  • If liability is to be extended, it needs to be designed carefully. The competitiveness of the banking sector is an important consideration in that design and harmonising environmental liability regimes without harmonising banking regimes could be damaging. In a very competitive banking sector, increasing liability on lenders may cause them to increase interest rates, reducing the incentives for firms to take care. In this case, it may be desirable to set quite low levels of lender liability. In a less competitive banking sector, an increase in lender liability may lead banks to reduce interest r
    '"/>


  • Contact: Professor Alistair Ulph
    amu@soton.ac.uk
    01703-592544
    Economic & Social Research Council
    2-Dec-1999


    Page: 1 2

    Related medicine news :

    1. Should medical students have earlier contact with patients?
    2. Should nurses conduct breast cancer follow-up visits?
    3. Should compulsory screening of immigrants be part of UK public health policy?
    4. Should the standard guidelines for assessing prostate cancer control be changed?
    5. Should living liver donation be available in the NHS?
    6. Should ambulance crews perform emergency breathing procedure?
    7. C-reactive proteins: Should everyone be tested?
    8. Should people with dementia be electronically tagged?
    9. Should we help to create disabled babies?
    10. Should people with diabetes sleep with the lights on?
    11. Should women be screened for domestic violence?

    Post Your Comments:
    *Name:
    *Comment:
    *Email:


    (Date:12/8/2019)... ... December 08, 2019 , ... Intelligent.com, a ... Top 52 Best Homeland Security Degree Programs for 2020. The comprehensive research guide ... nation. Each program is evaluated based on curriculum quality, graduation rate, reputation, and ...
    (Date:12/6/2019)... ... ... Allegheny Health Network (AHN) has named Kymberly Gyure, MD, Chair of the AHN ... 2018, previously served as AHN’s Vice Chair of Pathology and Laboratory Medicine, and Director ... part of the pathology faculty at Drexel University College of Medicine. , Dr. ...
    (Date:12/6/2019)... ... 2019 , ... Dr. Scott Howell, a 2019 graduate of Trident University International’s ... benefits of coconut oil in the 7 November 2019 edition of Progress in ... A Structured Literature Review,” led by Dr. Hector O. Santos, examines the effect of ...
    (Date:12/5/2019)... ... December 05, 2019 , ... It’s ... launching exceptional products that help people embrace, achieve, and maintain a healthy lifestyle ... been more committed to our mission of impacting world health, so it’s gratifying ...
    (Date:12/4/2019)... (PRWEB) , ... December 04, 2019 , ... ... the 2019 HREI Insights Awards™, the only national awards dedicated to recognizing excellence ... , The 2019 awards were presented in nine different categories during the GlobeSt ...
    Breaking Medicine News(10 mins):
    (Date:12/2/2019)... ... 02, 2019 , ... A Better Life Recovery, a leading ... health facility, announced it has named Tim Ryan and Jennifer Gimenez as the ... efforts. , "We are proud to announce that Jennifer and Tim have joined ...
    (Date:12/2/2019)... , ... December 02, 2019 , ... ... nutritional supplement produced by Native Remedies aimed at supporting Women’s Fertility and healthy ... Nature makes conception harder for some women than for others. Factors like weight, ...
    (Date:11/30/2019)... (PRWEB) , ... November 28, 2019 , ... ... (Retired) ( DowDuPont) was elected chairman of the board of trustees of ... in Arlington, Virginia. Tom Votel, President & CEO, Ergodyne , was elected ...
    Breaking Medicine Technology:
    Cached News: