In order to give focused attention to scaling up green finance, banks and financial institutions would have to invest in human resources and capacity building efforts as well as integrate environmental and social risk considerations into their corporate credit appraisal mechanisms. 27.
This lower level of liquidity introduces new risks through an increase in market volatility that could amplify negative spill-over effects in stress situations. Another frequently discussed challenge is that of EMEs’ foreign-currency corporate borrowing in US dollars and the impact of the stronger dollar and higher yields on debt-servicing and refinancing risks.