It could also have the side effect of making it less attractive to fund environmentally harmful investment. That said, it would be wrong to want to use banking regulations to set climate policy incentives, for example by granting risk weighting “discounts” for “green” assets.9 Capital requirements should always be geared to risk.
Such access is especially powerful for the poor as it provides them opportunities to build savings, make investments and avail credit. Importantly, access to financial services also helps the poor insure themselves against income shocks and equips them to meet emergencies such as illness, death in the family or loss of employment.