Sustainability of Banks

This section will look at some of the reasons why banks, particularly commercial banks, are increasingly concerned with sustainability.

One possible explanation is that the survival and expansion of banks depends on their sustainability. Recent research, for example, shows that social capital can contribute to the success of stakeholder-oriented banks. These banks adhere to the stakeholder business model, which prioritizes the interests of all stakeholders, including employees, customers, and the environment. Furthermore, it has been demonstrated that banks with the most shareholder-oriented governance underperformed during the crisis.