The Impact of Sustainable Banking Practices on Banks’ 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 following the global financial crisis of 2007-2009. Using a panel dataset of 473 banks in 74 countries from 2007 to 2016 and applying Generalized method of moments (GMM), we find that corporate environment performance (CEP) is negatively related to bank stability which is proxied by non-performing loans (NPL). |