Sustainable Banking Research Articles

FinTech Revolution and Future of Sustainable Banking: Opportunities and Risks Analysis

The FinTech revolution has disrupted the traditional banking industry, creating new opportunities for innovation and growth. The integration of FinTech has the potential to drive positive social and environmental impact in the banking industry, contributing to the achievement of sustainability goals globally. However, this revolution also poses significant risks, including cybersecurity threats, data privacy concerns, limited regulatory oversight, limited access to capital, and the risk of exacerbating inequalities. This paper analyzes the opportunities and risks associated with the FinTech revolution and the future of sustainable banking. It highlights the importance of leveraging innovation to create more sustainable and equitable financial systems while prioritizing cybersecurity, data privacy, and regulatory compliance. It also emphasizes the need to promote financial inclusion and responsible investment and to integrate ESG considerations into risk management strategies. The paper delineated the FinTech revolution, and the future of sustainable banking represents a critical opportunity for the banking industry to contribute to sustainability goals and create a more equitable and sustainable financial system for the future.

Investment Banking Activities In Nigeria: A Critical Discourse Analysis of Problems and Prospects

The investment bank's performance was researched and critically analysed, and how such performance might contribute to economic growth notably in Nigeria. Using the Nigerian financial industry, this study assessed the issues of investment banks in a growing nation. This study spanned the years 1960 through 2023. The period was marked by a credit boom, a financial recession, a rebound, and strong economic expansion. In this study piece, a systematic literature review (SLR) was performed, and the research revealed crucial challenges of Investment Banks in an emerging economy. Among the difficulties cited are: regulatory compliance, technology management, cyber risk, cost pressure as inferior ROE hits, the development of Fintech businesses, ring-fencing, and so on. The research identified the following important roles of investment banks: initial public offering activities, mergers and acquisitions, risk management, research, derivatives, merchant banking, and investment management. According to the research, in order for the performance of investment banks in Nigeria to significantly improve, the following should be pursued aggressively: a cost-cutting strategy, cultural transformation, a customer-centric approach to business, technological development, financial depth development, and the development of a sustainable investment bank framework. This study believes that if the recommendations are adopted, the profit of investment banks would improve, allowing them to execute their core functions and contribute to the growth of the economy, particularly in a rising economy like Nigeria.

The Enterprise at the Service of Society in the 21st century

The Enterprise at the Service of Society in the 21st century

Bibliometric Review on Sustainable Finance

Unlike conventional finance, sustainable finance seeks to integrate social, environmental, and climate change considerations into financial institutions’ business strategies. The financial system’s ability to positively respond to sustainability transition demands is contingent upon a directional transformation that involves regulatory, political, structural, theoretical, and relational shifts. Accordingly, this paper performs a quali-quantitative analysis that combines both a bibliometric method with a content analysis process to investigate the trend of sustainable finance literature in the Scopus database and provide directions for potential future research. Our bibliometric performance analysis of 723 publications reveals that the UK, China, the US, Switzerland, and Japan are the major centers of research excellence in sustainable finance. They are the most productive countries and hold the most relevant institutions. Moreover, the prevalence of transdisciplinary journals over mainstream finance and economics sources is obvious. Our network map analysis, on the other hand, shows the substantial relevancy of sustainable/green banks’ involvement in sustainable development. Nonetheless, its relatively low density underlines the existence of relevant research gaps. Therefore, we undertake a content analysis of that particular topic’s literature to derive its conceptual structure and truly understand banks’ important role in sustainability transition. Key research themes in this respect include sustainability performance and banks’ profitability associations; sustainable banks’ risk profile; determinants of banks’ willingness to introduce sustainability criteria into their business strategy; depositors’/customers’ responsiveness to banks’ sustainability performance; and relevant macroprudential regulations, monetary policies, and supervisory guidelines to sustainability transition.

Sustainable Marketing Performance of Banks in the Digital Economy: The Role of Customer Relationship Management

Customer relationship management (CRM) has become the lifeblood of banking and the principal driver of sustainable marketing performance in the digital economy. The discovery of computers and the Internet has transformed the industrial economy into digital through the integration of CRM and related elements, resulting in several benefits, including growth in research documents and increased collaborations. Marketers have developed a CRM system that integrates the digital infrastructure and digital capabilities of people to promote the sustainable marketing performance of banks through innovations such as customer acquisition, segmentation, customization, loyalty, and profitability. The paper aims to analyse the scientific landscape of CRM and sustainable marketing performance in the digital economy. The authors resorted to the Scopus database to extract 1485 documents and filtered 248 for Scopus analysis and to determine the roles of CRM. The filtered documents were then exported to VOSviewer for visualization mapping, including co-authorship and co-occurrence analysis. The visualization mapping depicts relationships among the keywords. The results of the research indicate an upwards growth in research publications since 2003, growing interest in funding and collaborations by countries and institutions, and the relationship among the keywords. The emerging financial crisis is a motivation for research in the area of study. The results also indicate that the integration of CRM into digital technology promotes collaborations and innovations resulting in the development of banking software applications to promote customer acquisition, retention, loyalty, profitability and sustainability. The study developed an integrated framework for sustainable banking performance. Global crises, including financial crises and COVID-19, have increased research output and become an integral part of CRM. Green banking is to be researched and integrated. The study will be used as a basis for further studies and for bankers for policy formulation.

The Use of Sustainable Financial Instruments in Relation to the Social Impact Investment: ESG Policies, Capital Markets’ Approach and Investors’ Protection: An Innovative Perspective for a Global Surveillance Authority

Social Impact Investment (SII) refers to the provision of finance to organizations addressing social needs. It is intended to achieve both a social impact as well as garner financial returns. Thus, SII may be understood as a business case for what was previously considered mostly philanthropic activities. In the case of SRI (Sustainable and Responsible Investment), investors decide in which company to invest on the basis of Environmental, Social and Governance (ESG) criteria. They consider a company's performance with respect to its effects on nature, its relationships with employees, clients and society, and the transparency of its governance. Where possible, companies should provide quantitative, comparable and forward-looking performance metrics to facilitate ESG integration. It is recommended that companies should use credible indicators which are included in internationally recognised reporting frameworks like GRI, SASB, IIRC, TCFD, CDP or UNGC. Companies should disclose their methodology and provide explanations to support quantitative indicators (ESG metrics), establishing the link between ESG and financial performance. The investor perspective is in important issue, which should be taken under consideration by European and local supervising authorities, under the provisions of the Market Abuse Directive and the MiFID, especially after the introduction and use of ESG and sustainable financial instruments, in both, Banking and Capital Markets. Therefore, SII can be a very useful tool for achieving EU Social Policy objectives. EU efforts (DG EMPL/FISMA) can be targeted at four specific aims that concern impact measurement: 1) promotion of the standardisation of impact measurement through the further development of the taxonomy regulations to include social objectives or the creation of standardised guidelines or the further development of ESG metrics; 2) capacity building in the area of impact measurement; 3) increasing the availability of the data needed; and 4) the promotion of additional and more specialized sustainable financial instruments linked to the Banking Sector and Capital Markets, which in turn will leverage more the total investment amount derived from the InvestEU tool and offer to all stakeholders more flexibility. Therefore, the global liquidity will be increased, and a strong economic turmoil could be avoided under the surveillance of a theoretically established Global Surveillance Authority. The use of sustainable financial instruments by a P.E.S. (social enterprise) under a public-private partnership (PPPs) is also feasible and socially rewarding.

The impact of sustainable banking practices on bank stability

This study seeks to examine whether corporate environmental performance (CEP) and corporate social performance (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.

Impact Analysis of the Implementation of Sustainable Credit Governance and Corporate Social Responsibility (CSR) During the Covid-19 Pandemic at Bank X and Bank Y

The increasing occurrence of non-performing loans can cause non-performing loans (NPL) loans to rise and have an impact on the Bank. Non-Performing Loan is the main parameter or ratio to measure the level of credit health in the banking sector, NPL consists of non-performing loans, so banks, especially the credit department, must be careful when realizing credit so that the credit is not problematic. This study aims to analyze the relationship between Bank X and Bank Y related to the implementation of credit governance and sustainable Corporate Social Responsibility (CSR) during the COVID-19 Pandemic at Bank X and Bank Y. Implementation of credit governance at Bank X and Bank Y is used as three pillars that are interconnected with Corporate Social Responsibility (CSR) related to credit loans during the COVID-19 era by developing the MSE Funding TJSL program. This is in line with the contribution of Bank X and Bank Y to Sustainable Economic Development (SDGs), namely in goal number 8 of Decent Work and Economic Growth. The implementation of ISO 26000 in organizational governance, fair operating practices, and consumer issues in both banks is well implemented. Sample the study by interviewing 14 respondents and using Content Analysis. The results showed that Bank X and Bank Y have implemented three ESG pillars as sustainable business efforts in Sustainable Banking, Sustainable Operation, and Sustainable Corporate Social Responsibility (CSR) during the COVID-19 pandemic. The two banks, namely Bank X and Bank Y have implemented sustainable business practices (Good) Corporate Governance & Sustainability Business in Banking). The existence of market risk, liquidity, legal risk and reputational risk, the strategic risk to both Banks does not affect the Bank in implementing sustainability practices.

The impact of bank's engagement in shadow banking activities on bank's sustainability: Evidence from Chinese commercial banks.

The economic and environmental consequences of bad banking practices have aroused much attention. In China, banks are at the center of shadow banking activities through which they avoid regulation and support environmentally unfriendly businesses such as fossil fuel companies and other high-pollution enterprises. In this paper, we study the impact of bank's engagement in shadow banking activities on its sustainability by using annual panel data of Chinese commercial banks. The result shows that bank's engagement in shadow banking activities has a negative impact on its sustainability and the negative impact of bank's engagement in shadow banking activities is more pronounced for city commercial banks and unlisted banks which are less regulated and lack corporate social responsibility (CSR). Furthermore, we explore the underlying mechanism of our findings and prove that bank's sustainability is impeded because it transforms high-risk loan into shadow banking activities which are less regulated. Finally, by using difference-in-difference (DiD) approach, we find that bank's sustainability improved after the financial regulation on shadow banking activities. Our research provides empirical evidence that the financial regulation on bad banking practices is beneficial for bank's sustainability.

SUSTAINABLE BANKING, FINANCIAL STRENGTH AND THE BANK LENDING CHANNEL OF MONETARY POLICY

The aim of this article is to analyse how sustainable banking affects the transmission of monetary policy through the bank lending channel. We also quantify how these effects are determined by the financial strength of each bank. These objectives, which have not been studied previously, represent an important contribution because real sustainable concerns in banking did not emerged until recently, mainly with the adoption of the Sustainable Development Goals that should be reached by 2030. Since then, some studies have focused on the effects of sustainability on aspects such as bank profitability, risk or efficiency, but none has considered the effects on the bank lending channel of monetary policy. In fact, central banks have incorporated sustainability criteria into their agenda and are analyzing how to include these criteria in the monetary policy framework, so we contribute even more by shedding some light on these aspects and how they depend on the financial strength of the banking sector. We used quarterly data from 79 listed banks from the OECD between 2016 and 2019 (947 observations) and we found that the bank lending channel is operative either for banks with very low sustainability ratings or a weak financial position. When sustainability ratings increase and financial strength becomes moderate, the bank lending channel is ineffective and monetary shocks do not affect lending. For banks with certain sustainable compromises and a strong financial position, the impact of monetary shocks on lending is the opposite of the one that the bank lending channel proposes, and this impact is more intense as sustainability ratings increase. Finally, our results also show that increases in central bank assets boost lending only for banks with low or moderate sustainability ratings, regardless of their financial strength. Overall, these results suggest that more sustainable banks are less dependent on monetary policy decisions.

Problems of the development of «green» banking in Ukraine

Methods. General and specific research methods were used during the research. The basis of the study was the theoretical and scientific–methodical provisions of economic sciences, banking theory and the monetary system, as well as modern concepts of economic growth in the country, theoretical achievements of domestic and foreign scientists, dedicated to the problems of the «green» economy and its impact on economic growth. The method of generalization was used in determining the «green» economy and «green» financing, which are the main reasons for the emergence and development of «green» banking in the world and in Ukraine. The method of scientific abstraction, structural decomposition, indication and deduction was used in substantiating the theoretical foundations of «green» financing and «green» banking. The method of grouping and system analysis made it possible to reveal the features of «green» banking in Ukraine, the problems of its development, and the systematization of ways of further implementation in the period of the post– war formation of the economy of Ukraine. Results. The main features and problems of the functioning of the Ukrainian «green» banking system in the modern period have been determined. The special role played by the effective development of «green» financing in the sustainable economic development of the country has been established. The main banking instruments used in the global practice of «green» banking, as well as the experience of using them in the banking system of Ukraine, were studied. An assessment of the obstacles to the application of «green» banking and the use of «green» financial instruments in the context of financing sustainable development projects in Ukraine was carried out. The main ways of overcoming the negative impact of global crises have been determined, taking into account the international experience of banking activity. Novelty. In the study, the experience of the development of «green» banking in Ukraine was studied and possible ways of using «green» financing during the period of building the economy of sustainable development and the post– war recovery of the country were determined. Practical value. Ways of further effective implementation of «green» banking in terms of the program of sustainable development of Ukraine and the construction of sustainable banks are proposed

The Effect of Economic, Financial and Political Stabilities on the Banking Sector: Cases of Six Balkan Countries

Today, banks, which act as financial intermediaries, ensure the growth of the economy. Banks, being a channel in monetary policies and monetary issues, are effective institutions in ensuring sustainable macroeconomic stability. In addition, banks are one of the institutions that are exposed to the most financial risk by nature. This article explores the long-term effects of economic, financial and political stabilities on the banking sector. This research covers the 21-year period between 1996–2017. The aim of this study is to examine the effects of economic, financial and political stabilities, which are the components of country risk, on the banking sector in selected Balkan countries and using the panel data analysis technique, which is one of the econometric analysis methods. Panel cross-sectional dependence, unit root tests, cointegration and causality tests were applied according to country risk indicators for the six selected Balkan countries. The selected Balkan countries have paid attention to their development in the country’s economies and their involvement in global trade and to adopt the modern banking system. In addition, six Balkan countries have been selected as examples in the study due to their close relations with Turkey in the socio-cultural and economic fields. The results of the panel tests indicated the of unit root tests as well as the existence of cointegration. The p values obtained as a result of cointegration analysis are less than 0.005, indicating the existence of cointegration. It has been concluded that there is a cointegration relationship in all three hypotheses, which have the effects of economic, financial and political stabilities on the banking sector. According to the Granger causality test results, there is a bidirectional causality relationship between the banking variable and the economic stabilities variable. Having long-term and causal relationships between selected Balkan economies requires financial and economic stability to be supported simultaneously. In short, it has been determined that economic, financial and political stabilities have a relationship with sustainable banking in the long term.

Practices of Green Financing and Sustainable Development: Scope and Complexity

Green financing or environmentally friendly financing is a newly arising financial form to accumulate environmental preservation with sustainable goals, economic gains, emphasizes environmental benefits, low carbon economy in ways that benefit the organization and its stakeholders. Entrepreneurs, investors, and owners of the organization of different countries in the world are more concerned about investment their capital that’s why they prefer green or sustainable financing. The article is devoted to the study of the essence of "green" finance and to highlight the present condition of green financing in Bangladesh. This research paper mostly draws on secondary data that was gathered from the Bangladesh Bank's annual report as well as publications on sustainable and inclusive banking, green banking, and green financing that were published in newspapers, journals, and books. The goal of the article is to examine how green financing might be used to achieve sustainable development objectives in Bangladesh and reveals the various challenges that impact to achieve the sustainable development of Bangladesh as well as opportunities which are going to aid the financial institutions of our country. The necessity of greening the financial system is covered in this study and the role of financial governance to overcome the crisis of electricity and how renewable energy (green) will help to diminish this difficulty.

Pengelolaan Bank Sampah Mandiri Secara Berkelanjutan di Kelurahan Mojosongo Surakarta

According to Sustainable Waste Indonesia (SWI) data, less than 10% of plastic waste is recycled and more than 50% still ends up in landfill site. The total volume of waste generated by the City of Surakarta in 2020 is 107,873 tons per year, so a waste management scheme is needed that is the joint responsibility of the government, the private sector and the community. One of the waste management schemes involving community participation is through the Waste Bank. The Waste Bank is one solution to deal with the problem of increasing waste production. The waste bank program is a collective self-subsistent waste management system with the principle of recycling. People who act as bank customers will also benefit by depositing their waste and then saving it through a waste bank and from their savings can be taken as needed. Thus, the waste bank will have a positive impact on the environment and improve economic conditions in a community. The sustainable self-subsistent waste bank management program is a solution in handling waste problems in RW 28, Mojosongo sub-district, Surakarta. The implementation of the waste bank management program in RW 28 Mojosongo Village, among others: 1) the establishment of a waste bank, 2) technical training, 3) implementation and development of the waste bank system<em>.</em>

Corporate Social Responsibility as the Pathway to Sustainable Banking: A Systematic Literature Review

Social and environmental sustainability challenges have led researchers to concentrate on sustainable banking and corporate social responsibility (CSR) practices. CSR aspects that are used for sustainable banking are explored, evaluated and summarized by limited literature. This study aims at identifying and summarizing the theories and the CSR dimensions used in sustainable banking related studies. The study critically analyzed 30 relevant documents that were systematically extracted from the Web of Science and Scopus databases covering the period of 2012 to 2022. The results show that researchers’ concentration on sustainable banking increased after the declaration of the Paris agreement and sustainable development goals (SDGs) in 2015 and 2016, respectively, where the majority of studies highlight the Asian and European contexts. The study identifies 14 theories and 28 CSR dimensions for sustainable banking. Based on those dimensions, the study proposes a model of sustainable banking. Later, it maps the relevant theories with the CSR dimensions so that future researchers can experiment with those theories and dimensions with sustainable banking in different contexts. Moreover, the study recommends that researchers can focus more on organizational change and risk management theories, and CSR dimensions that integrate social and environmental issues, as well as SDGs.

Sustainable Banking

Sustainable Banking

Investment Bank, Financial Performance, Economic growth and Development: An Empirical Analysis of Investment Banking Activities and Financial Market in an emerging Economy: A case study of Nigeria

The investment bank's performance was researched and critically analysed, and how such performance might contribute to economic growth notably in Nigeria. This study is unique in the Nigerian financial market since it empirically studied connected characteristics that potentially impact investment bank performance in Nigeria. This study spanned the years 1996 through 2022. The period was marked by a credit boom, a financial recession, a rebound, and strong economic expansion. Because of the nature of the study topics, a quantitative approach was taken. The study discovered that bank-specific characteristics, industry-specific factors, macroeconomic drivers, and institutional factors are relevant in evaluating the performance of Nigerian investment banks. That is, a critical examination of the performance of Nigerian investment banks is centred on bank-specific characteristics. This suggests that the capacity of investment banks to fulfil their essential functions is determined by internal factors such as capital, credit risk, operating expenditures, and size. Additionally, the industry strength demonstrated that the financial market's depth had an influence on investment banks. The significance of competitiveness was underlined. Macroeconomic factors such as GDP growth, interest rates, inflation rates, and oil prices shown that a strong macroeconomic environment is required for vibrant investment banks. Lastly, institutional variables such as a developed insurance industry, political stability, the rule of law, and effective government policies can all have an impact on the success of Nigerian investment banks. The research recommended that, in order to significantly improve the performance of investment banks in Nigeria, the following strategies be pursued aggressively: cost reduction strategy, cultural transformation, adopting a customer-centric approach to business, technological development, financial depth development, and development of a sustainable investment bank framework. This study believes that if the recommendations are adopted, investment banks' profits would improve, allowing them to execute their core functions and contribute to the growth of the economy, particularly in a rising economy like Nigeria. &nbsp

Creating a Environmental Sustainable Design Practices Case Bank: Integrating Industry and Teaching at the Threshold

Creating a Environmental Sustainable Design Practices Case Bank: Integrating Industry and Teaching at the Threshold

Adaptation of Green Banking Practices in Commercial Banks of Nepal

This research project aimed to investigate the current state of green banking practices along with the factors influencing the adoption in commercial banks in Nepal. The findings from the data analyzed through SPSS software revealed the descriptive findings indicate that among the five independent variables, Brand Image has the highest mean value of 3.596, indicating that it is perceived as the most important factor influencing the adoption of green banking practices. This is followed by Financial Benefits with a mean of 3.462, Regulatory Policies with a mean of 3.338, Environmental Interest with a mean of 3.332, and Stakeholder's Demand with the lowest mean of 3.076.Furthermore, the dependent variable, Adoption of Green Banking Practices, has a mean of 3.382, suggesting that respondents agree that the adoption of green banking practices is influenced by the independent variables, including Stakeholder's Demand, Regulatory Policies, Environmental Interest, Financial Benefits, and Brand Image. The study highlighted the importance of brand image as the most influential factor, with the highest mean score among the variables examined. Additionally, it indicated that there was a moderately positive environment for green banking practices among Nepalese commercial banks. Overall, this study contributes to the growing body of knowledge on green banking adoption and offers practical implications for sustainable banking practices in Nepal. Keywords: green banking, practices, influence factor, adoption, descriptive

Towards Sustainable Bank Bailouts

Towards Sustainable Bank Bailouts