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Banks should face penalties for restricting loans under ESG

Readers’ letters on who banks should lend to, election promises, the ESG pushback, Star Entertainment’s bid for tax relief and Taiwan.

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Reading about the Coalition’s proposed loan regime amid ESG pushback (“Coalition to lean on ‘woke’ banks”) brings to light an important issue: whether banks should face penalties for restricting loans to anti-green industries under the guise of ESG principles.

The answer is clear: they should. Banks that refuse to lend to creditworthy businesses in vital sectors, regardless of their environmental footprint, should face levies to subsidise lenders who step up – or risk losing their banking licences.

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    Original URL: https://www.afr.com/politics/federal/banks-should-face-penalties-for-restricting-loans-under-esg-20250119-p5l5lu