Sustainable and Conventional Banking in Europe

Abstract

At the end of the 20 th century a new banking model, the so-called ethical banking, emerged becoming the maximum exponent of a socially responsible investment. The financial crisis in 2008 led to a distrust of the conventional financial system and consequently investors began to look with interest this new banking, which only invests in ethical activities and products, with social and environmental criteria, total transparency and a democratic management. The aim of this article is to analyze the economic structure of ethical banking, compared to that of conventional banking, by paying attention to its liquidity, coverage and solvency. Specifically, We compare the financial statements of Triodos Bank, the main European ethical bank belonging to the Global Alliance for Banking on Values, with two of the main conventional banks of each of the five countries in Europe in which it operates. To do this, we apply a financial and economic analysis to the period from 2015 to 2018, the means difference test and analysis of variance on an array of financial ratios and, finally, probit regressions. The results reveal that ethical banking is growing more than conventional banking and it presents greater liquidity and solvency, although, in general terms, its profitability is not higher. In conclusion, both savers and investors have guarantees that their savings are invested not only in a responsible but also in a confident way in ethical banking.

Fintech and the Future of Banking: Collaboration and Innovation for Better Financial Services

“…While conventional banks faced challenges during the crisis, ic banks also came under scrutiny regarding their role in strengthening financial stability (Rashid et al, 2017). Conventional banks have been known to adapt their business models in response to financial crises, making changes to their behavior to enhance stability (Martínez et al, 2020). In contrast, IC banks operate under different principles, such as avoiding interest-based transactions, which can impact their financial performance and stability (Islam, 2012).…”

Women in sustainability research: Examining gender authorship differences in peer-reviewed publications

“…During the last years, higher education institutions (HEIs) have been increasing considerably the incorporation of sustainability into their system elements (Desha et al, 2009;Lozano, 2010;Sammalisto et al, 2016), especially in Europe (Karatzoglou, 2013;Lozano et al, 2015. This has included, for instance, studies on governance, such as on board of directors and policies (Valls Martínez et al, 2019); campus operations (e.g., energy, waste, and water management) (Amaral et al, 2020); education (e.g., pedagogical approaches and competences) ; and assessment and reporting (Matten and Moon, 2004;Disterheft et al, 2012). However, there have been limited studies on the incorporation of sustainability in research (Withycombe Keeler et al, 2016;Torabian, 2019), particularly in scientific publishing (Leal Filho et al, 2021).…”

Gaussian‐Based Soft Computing Approach to Alternative Banking System for Sustainable Financial Sector

“…ose with surplus funds can earn income with the help of banks [1]. On the contrary, companies can easily access the fund they need with the support of banks [2]. Briefly, banks support the efficient flow of funds in the country.…”