Due Diligence for Responsible Corporate Lending and Securities Underwriting

Overview

The paper ‘Due Diligence for Responsible Corporate Lending and Securities Underwriting’ aims to help banks and other financial institutions implement RBC due diligence.

It guides banks and other financial institutions to implement the due diligence recommendations of the OECD Guidelines for Multinational Enterprises in the context of their corporate lending and underwriting activities.

Due diligence can help banks prevent or address adverse impacts related to human and labour rights, the environment, and corruption associated with their clients as well as avoid financial and reputational risks. However, currently no widely recognized standard on responsible business conduct exists for these types of transactions, although they represent a significant portion of client services of commercial banks.

In this context, the paper identifies key actions under each step of the due diligence process and includes discussion of key considerations, such as challenges, existing practices, or regulations specific to the corporate lending and securities underwriting transactions which may impact due diligence approaches. 

This publication is accessible online.

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