A new study published in China Finance Review International reveals that BRICS banks—including those in Russia—benefit financially when backing sustainable and tech-savvy borrowers.
Analyzing data from 2015 to 2023, researchers found that banks extending loans to companies with strong ESG (environmental, social, and governance) performance enjoy more stable profits and face fewer non-performing loans.
The findings also highlight the role of technology: borrowers who invest in digital transformation are less likely to default—especially during times of crisis.
Interestingly, smaller banks see the greatest upside. With limited resources, they gain the most from smart capital allocation, making green and tech-focused lending a strategic advantage rather than just a nice-to-have.