Sustainable Value Creation in Commercial Banks During Financial Crisis

Abstract

Sustainable value leads to the financial institution's positive economic performance during financial crisis. More and more banks in European Union are implementing sustainable development strategy, in order to avoid economic downturn in crisis time. The main goal of this paper is to propose a model of sustainable value measurement in commercial banks during financial crisis. To reach this goal the sustainable value approach and the importance of corporate social responsibility in the commercial banking and the role of shareholder value in sustainable value were analysed. Moreover, the model of measurement of shareholder value is analysed and created the joint model of sustainable value measurement. Based on these methods and models, the share-holder value of the banks is established, the sustainable value of the bank was evaluated and compared. Relationship of sustainable value and shareholder value was established. The results show that sustainable value creation helps bank industry to maintain positive economic performance even in crisis time.