| Title | The impact of sustainable banking practices on bank stability |
|---|---|
| ID_Doc | 74816 |
| Authors | Salim, K; Disli, M; Ng, A; Dewandaru, G; Nkoba, MA |
| Title | The impact of sustainable banking practices on bank stability |
| Year | 2023 |
| Published | |
| Abstract | This study seeks to examine whether corporate environmental performance (CEP) and corporate social perfor-mance (CSP) affect stability of the banking industry. The topic is of much interest to researchers and policy makers considering the growing demand to integrate environmental and social practices into banking business model. Based on a panel dataset of 473 banks in 74 countries, this research finds that CEP is negatively related to bank stability as measured by non-performing loans (NPL). However, the impact is insignificant for small and large banks, as well as for banks in countries with low environmental scores. Furthermore, CSP does not appear to have a significant relationship with bank stability, but financial product safety, which is an aspect of CSP, does. The results are robust to a variety of econometric specifications and have significant policy implications for investors, bankers and regulators. |
Similar Articles
| ID | Score | Article |
|---|---|---|
68891
|
Laguir, I; Marais, M; El Baz, J; Stekelorum, R Reversing the business rationale for environmental commitment in banking: Does financial performance lead to higher environmental performance?(2018)Management Decision, 56, 2 | |
| 73568
|
Costa-Climent, R; Martínez-Climent, C Sustainable profitability of ethical and conventional banking(2018)Contemporary Economics, 12, 4 | |
| 66160
|
Shah, AA; Wu, DS; Korotkov, V Are Sustainable Banks Efficient and Productive? A Data Envelopment Analysis and the Malmquist Productivity Index Analysis(2019)Sustainability, 11.0, 8 | |
| 65217
|
Inácio, LD; Delai, I Sustainable banking: a systematic review of concepts and measurements(2022)Environment Development And Sustainability, 24.0, 1 | |
| 66934
|
Dicuonzo, G; Donofrio, F; Iannuzzi, AP; Dell'Atti, V The integration of sustainability in corporate governance systems: an innovative framework applied to the European systematically important banks(2022)International Journal Of Disclosure And Governance, 19, 3 | |
| 78036
|
Karkowska, R Business Model as a Concept of Sustainability in the Banking Sector(2020)Sustainability, 12, 1 | |
| 72883
|
Liu, H; Huang, WL Sustainable Financing and Financial Risk Management of Financial Institutions-Case Study on Chinese Banks(2022)Sustainability, 14, 15 | |
| 66844
|
Istudor, N; Nitescu, DC; Dumitru, VF; Anghel, C Banking, Competitiveness and Sustainability: The Perspective of the Three Global Actors: US, China, Europe(2022)Journal Of Competitiveness, 14, 3 | |
| 73022
|
Sharma, D; Kumar, P Prioritizing the attributes of sustainable banking performance(2024)International Journal Of Productivity And Performance Management, 73, 6 |