REGULATION OF BANKING ACTIVITIES IS AN IMPORTANT TOOL FOR STIMULATING GREEN INVESTMENTS: CASE BY SELECTED UPPER MIDDLE-INCOME COUNTRIES

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MÜRSƏLOV M.

FINANCIAL AND CREDIT ACTIVITY-PROBLEMS OF THEORY AND PRACTICE, vol.5, no.64, pp.11-24, 2025 (ESCI, Scopus)

Abstract

The article examines the mechanism of banking regulation as an important tool for stimulating green investment and green financing for sustainable development. The subject of the study is to identify the causality between banking regulation methods and green investment indicators. The object of the study is countries whose income level exceeds the average (mainly European and Central Asian countries, as well as Azerbaijan). The diagnostics are carried out within the framework of clusters formed depending on the specifics of the banking regulation process, with the involvement of statistical data from the World Bank for the above-mentioned regions and countries. At the same time, indicators characterizing separate parameters of monetary policy and sustainable development are covered. In particular, the position of the Republic of Azerbaijan was established on the basis of cluster analysis using appropriate methods and tools. At the next stage of analysis, logical connections were established through modeling and testing, and a comparative characteristic of country clusters was carried out, which was necessary for verifying or disavowing the proposed hypothesis. The developed conclusions and recommendations can be used by government agencies in developing the strategy and tactics of the policy being pursued and in making management decisions.