Banks in the European Union would have to publish a groundbreaking "green asset ratio" (GAR) as a core measure of their ...

Banks in the European Union would have to publish a groundbreaking "green asset ratio" (GAR) as a core measure of their climate-friendly business activities from next year, the EU's banking watchdog proposed on Monday.

The European Banking Authority (EBA) said the ratio, put out to formal public consultation on Monday, will measure the amount of climate-friendly loans, advances and debt securities compared to total assets on a lender's balance sheet to reach a percent figure.

The new EU "taxonomy" would be used to define which assetsare environmentally sustainable.

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