EU’s Green Banking Metric Will Mislead Stakeholders, Lobby Says

The European Union’s planned metric for showing which banks have the greenest balance sheets won’t reflect their efforts to put the economy on a more sustainable footing, according to a German lobby group.

Banks will probably have green asset ratios in the “low single-digit” percentages when the metric takes effect next year, the Association of German Banks in Berlin said in a statement on Monday. That’s a very limited view of a lender’s sustainability profile, the lobby said.