Do banks practice what they preach? Brown lending and environmental disclosure in the euro area

The reduction of information asymmetries between banks and their stakeholders is pivotal to guarantee the functioning of the market discipline mechanisms that allow investors, depositors and a range of other actors to monitor bank risk taking practices. On the one hand, this aspect has been traditionally put under the spotlight by regulators at international level (e.g. Basel Committee on Banking Supervision) when it comes to the financial dimension of bank disclosures.