Abstract
The aim of this study is to discuss how the stance of a financial institution in associating a green financing
can be developed within an ambiance where monetary organizations are facing the challenges of capital
requirements by (BA)-III. Basel regulations would not segregate green loans from other financial facilities
regarding risk-weightings. The investigators contend that (BA)-III essentials are not supporting the lending
facilities of viable financial activities. Zarai Taraqiati Bank Limited-(ZTBL) that plays a vital role in
agricultural development sector of Pakistan is examined. The financial institution’s capability to increase
lending in lieu of green-projects later by the implementation of (BA)-III is engrossed. Investigators explore
that whether risk-weightings of green financing stood level down to 49.70 percent from 100, (ZTBL)’s
Capital Adequacy Ratio-(CAR) may be 4.5 percent points higher. Ongoing study assumes the riskweightage pertaining green loans need to moderate for ordering to boost up viable progress.
MIRZA MUHAMMAD ALI BAIG, Dr. NISAR AHMAD, Dr. NADIA NASIR. (2020) Constraints Regarding Green Financing Due to Limited Scope of Capital Requirements in Basel Accord. An Evidence from Development Financial Institutions of Pakistan Dealing in Agricultural Finance., International Review of Management and Business Research, Volume 9, Issue 3.
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