| 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 |
|
| DOI |
10.1016/j.rser.2023.113249 |
| 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. |
| Author Keywords |
Sustainable finance; Bank stability; Environmental performance; Social performance; Financial product safety |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Science Citation Index Expanded (SCI-EXPANDED) |
| EID |
WOS:000958684400001 |
| WoS Category |
Green & Sustainable Science & Technology; Energy & Fuels |
| Research Area |
Science & Technology - Other Topics; Energy & Fuels |
| PDF |
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