Business Model as a Concept of Sustainability in the Banking Sector

Abstract

The paper presents the concept of a sustainable bank by developing a framework based on performance of different business models. Traditional banking and investment activities, such as trading in securities or securitization, may reduce the risk of commercial banks and provide an attractive approach to sustainable finance. Using the method of assessing the performance of a bank, the study appraises the degree of sustainability of the bank from different stakeholders’ points of view. The aim of the article is to verify the research question: how does diversification of traditional activities of commercial banks affect their sustainability? The analysis has been extended by the importance of country-specific and macroeconomic factors. The survey was conducted on 368 commercial banks from European countries, using data from the period 1998−2015. The study contributes to the ongoing discussion on the recognized profitability and sustainability nexus as an important part of sustainable finance that may be a powerful solution to financial crises.

Sustainable financial services: reflection and future perspectives

“…Sustainable marketing of financial services is concerned with the sustainable promotion of financial products. Various marketing terms are related to sustainable marketing (Gordon et al, 2011 ), including ethical marketing (Laczniak and Murphy, 1991 ), responsible marketing (Laczniak and Shultz, 2021 ), social marketing (Dann, 2010 ), green marketing (Lymperopoulos et al, 2012 ; Papadas et al, 2017 ), ecological marketing (Katrandjiev, 2016 ). All of these articles provide discussion about theoretical foundations and conceptual framework but not the practical or empirical aspects of sustainable marketing of financial services.…”

Banking Risks in the Asset and Liability Management System

“…These studies identify deviations from parity conditions, forecast future cash flow errors, the level of competition, and the substitutability of production factors as crucial factors in the bank currency impact. Karkowska (2019) shows that the industry's competitive structure can also be the main factor in the impact of currencies. However, these theoretical studies pose many practical problems.…”

Does loan growth impact on bank risk?

“…The high loan growth indicates the expectation to gain more interest income [ 1 , 27 , 28 ]. However, over-developed banks will have lower earnings than slow-growing banks [ 29 , 30 , 31 ].…”