This study examines a novel form of debt financing – sustainability linked loans (SLL). SLLs are obtained by companies committed to sustainable growth in line with climate change goals. Compared to funding from most traditional green instruments, which is restricted to specific projects, SLL...

We assess the extent to which capital buffers (the capital banks hold in excess of the regulatory minimum) exacerbate rather than reduce the cyclical behavior of credit. We empirically study the relationships between output gap, capital buffers and loan growth with firm-level data for French...