The role of banks in the circular economy, Peterson Ozili and Francis Opene
Peterson K. Ozili and Francis U. Opene
Central Bank of Nigeria, Abuja
Nigeria
Email: petersonkitakogelu@yahoo.com/ francis.opene@yahoo.com
DOI: 10.47556/J.WJSTSD.19.1.2022.2
Purpose: This paper highlights the role of banks in the circular economy, a concept that has received considerable attention both in the business sector and in academia.
Method: The paper uses discourse analysis to highlight the role of banks and other financial institutions in the circular economy.
Findings: We propose that banks need to: develop a common understanding of the circular economy; issue widely accepted and recognised guidelines on circular economy finance; adapt existing finance models to fit into a circular economy model; offer credit lines to circular businesses; create a green bank; train bank staff; promote a strong culture of waste reduction and material re-use; ensure that the board risk committee is competent in circular risk management and control.
Implications: Banks have an important role to play both as a leader in circular economy finance and as a lender to companies in the circular economy.
Originality: The paper extends the literature on the role of finance in sustainable development. This paper is one of the first papers to explore the role of banks in the circular economy, and the role of other financial institutions in the circular economy.
Keywords: Banks, Circular Economy; Environment; Waste, Resources; Financial Institutions; Climate Change.
Citation: Ozili, P.K. and Opene, F.U. (2022): The Role of Banks in the Circular Economy. World Journal of Science, Technology and Sustainable Development (WJSTSD), Vol. 19, No. 1, pp. 17–23.
