As auto, mortgage, and credit card loans have become increasingly standardized, community banks have had to focus to a greater extent on small business and commercial real estate lending – products where community banks’ advantages in forming relationships with local borrowers are still important.
Green investments are not without normal financial risks either, and these risks cannot be disregarded without jeopardizing financial stability. The previous financial crisis pushed climate policy discussions into the political background for a decade. Let’s not repeat that.