Have a personal or library account? Click to login
From obstacles to new opportunities: Exploring profitability in the banking industry amid sustainability and the green transition Cover

From obstacles to new opportunities: Exploring profitability in the banking industry amid sustainability and the green transition

Open Access
|Sep 2025

References

  1. Akomea-Frimpong, I., Adeabah, D., Ofosu, D. & Tenakwah, E.J. (2021). A review of studies on green finance of banks, research gaps and future directions. Journal of Sustainable Finance and Investment, 12(4), 1241-1264. https://dx.doi.org/10.1080/20430795.2020.1870202.
  2. Azmi, W., Hassan, M.K., Houston, R. & Karim, M.S. (2021). ESG activities and banking performance: International evidence from emerging economies. Journal of International Financial Markets, Institutions and Money, 70, 1-18. https://dx.doi.org/10.1016/j.intfin.2020.101277.
  3. Beck, T., Chen, T., Lin, C. & Song, F.M. (2016). Financial innovation: The bright and the dark sides. Journal of Banking & Finance, 72, 28-51.
  4. Bömer, M. & Maxin, H. (2018). Why fintechs cooperate with banks - evidence from germany. Zeitschrift Für Die Gesamte Versicherungswissenschaft, 107(4), 359-386. https://dx.doi.org/10.1007/s12297-018-0421-6.
  5. Brandl, B. & Hornuf, L. (2020). Where did FinTechs come from, and where do they go? The transformation of the financial industry in Germany after digitalization. Frontiers in Artificial Intelligence, 3, 1-18. https://dx.doi.org/10.3389/frai.2020.00008.
  6. Bureau van Dijk. (2024). Orbis [Company database]. Bureau van Dijk. Accessed via Prague University of Economics and Business, (Accessed: 22.10.2024).
  7. Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 Amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as Regards Corporate Sustainability Reporting (Text with EEA Relevance), EP, CONSIL, 322 OJ L (2022). http://data.europa.eu/eli/dir/2022/2464/oj/eng.
  8. Debrah, C., Darko, A. & Chan, A.P.C. (2022). A bibliometric-qualitative literature review of green finance gap and future research directions. Climate and Development, 15(5), 432-455. https://dx.doi.org/10.1080/17565529.2022.2095331.
  9. Dreyer, J.K., Sharma, V. & Smith, W. (2023). Warm-glow investment and the underperformance of green stocks. International Review of Economics & Finance, 83, 546-570, https://dx.doi.org/10.1016/j.iref.2022.10.006.
  10. Dreyer, J.K., Sund, K.J. & Tatomir, M. (2024). Doing good in good times only? Uncertainty as contingency factor of warm-glow investment. Research in International Business and Finance, 71, 1-17.
  11. Deb, R., Behra, A. & Dusmanta, K. (2024). ESG Score and Firm Performance: Evidence from Indian–Listed Firms. South Asian Journal of Management, 30(4), 56-80. https://dx.doi.org/10.62206/sajm.30.4.2023.56-80.
  12. European Council. (2024). European Green Deal. Consilium. https://www.consilium.europa.eu/en/policies/green-deal/ (Accessed: 22.10.2024).
  13. Gomber, P., Kauffman, R.J., Parker, C. & Weber, B.W. (2018). On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services. Journal of Management Information Systems, 35(1), 220-265. https://dx.doi.org/10.1080/07421222.2018.1440766.
  14. Haris, M., Tan, Y., Malik, A. & Ain, Q.U. (2020). A Study on the Impact of Capitalization on the Profitability of Banks in Emerging Markets: A Case of Pakistan. Journal of Risk and Financial Management, 13(9), 217-238. https://dx.doi.org/10.3390/jrfm13090217.
  15. Hornuf, L., Klus, M.F., Lohwasser, T.S. & Schwienbacher, A. (2020). How do banks interact with fintech startups? Small Business Economics, 57(3), 1505-1526. https://dx.doi.org/10.1007/s11187-020-00359-3.
  16. Chams, N., García-Blandón, J. & Hassan, K. (2021). Role Reversal! Financial Performance as an Antecedent of ESG: The Moderating Effect of Total Quality Management. Sustainability, 13(13), 7026-7044. https://dx.doi.org/10.3390/su13137026.
  17. Jain, P. & Sharma, B.K. (2023). Impact of Green Banking Practices on Sustainable Environmental Performance and Profitability of Private Sector Banks. International Journal of Social Ecology and Sustainable Development, 14(1), 1-19. https://dx.doi.org/10.4018/ijsesd.330135.
  18. Kumar, V., Acharya, S. & Ho, L.T.H. (2020). Does Monetary Policy Influence the Profitability of Banks in New Zealand? International Journal of Financial Studies, 8(2), 35-52. https://dx.doi.org/10.3390/ijfs8020035.
  19. Lee, D.D., Faff, R.W. & Rekker, S.A.C. (2013). Do high and low‐ranked sustainability stocks perform differently? International Journal of Accounting & Information Management, 21(2), 116–132. https://dx.doi.org/10.1108/18347641311312267.
  20. Mehta, A. & Ganga, B. (2017). What Determines Banks’ Profitability? Evidence from Emerging Markets-the Case of the UAE Banking Sector. Accounting and Finance Research 6(1), 77-88. https://dx.doi.10.5430/afr.v6n1p77.
  21. Menicucci, E. & Paolucci, G. (2016). The determinants of bank profitability: empirical evidence from European banking sector. Journal of Financial Reporting and Accounting, 14(1), 86-115. https://dx.doi.org/10.1108/jfra-05-2015-0060.
  22. Mirovic, V., Kalas, B., Djokic, I., Milicevic, N., Djokic, N. & Djakovic, M. (2023). Green Loans in Bank Portfolio: Financial and Marketing Implications. Sustainability, 15(7), 1-14. https://dx.doi.org/10.3390/su15075914.
  23. Nizam, E., Ng, A., Dewandaru, G., Nagayev, R. & Nkoba, M.A. (2019). The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector. Journal of Multinational Financial Management, 49, 35-53. https://dx.doi.org/10.1016/j.mulfin.2019.01.002.
  24. Rahi, A.F., Akter, R. & Johansson, J. (2021). Do sustainability practices influence financial performance? Evidence from the Nordic financial industry. Accounting Research Journal, 35(2), 292-314. https://dx.doi.org/10.1108/arj-12-2020-0373.
  25. Rastogi, S., Kanoujiya, J., Gautam, R.S. & Agarwal, B. (2024). Profitability Is Not a Ticket to Increase the Investments in ESG: Evidence from Indian Banks. Vision: The Journal of Business Perspective 0(0), 1-15. https://dx.doi.org/10.1177/09722629241257120.
  26. Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on Sustainability‐ related Disclosures in the Financial Services Sector. (2024). https://eur-lex.europa.eu/eli/reg/2019/2088/oj/eng (Accessed: 22.10.2024).
  27. Regulation (EU) 2024/3005 of the European Parliament and of the Council of 27 November 2024 on the Transparency and Integrity of Environmental, Social and Governance (ESG) Rating Activities, and Amending Regulations (EU) 2019/2088 and (EU) 2023/2859 (Text with EEA relevance). (2024). https://eur-lex.europa.eu/eli/reg/2024/3005/oj/eng (Accessed: 22.10.2024).
  28. Refinitiv. (2023). Eikon [Financial database]. Refinitiv. Accessed via Prague University of Economics and Business.
  29. Renewed sustainable finance strategy and implementation of the action plan on financing sustainable growth— European Commission. (2020). https://finance.ec.europa.eu/publications/renewed-sustainable-finance-strategy-and-implementation-action-plan-financing-sustainable-growth_en (Accessed: 22.10.2024).
  30. Sachs, J.D., Lafortune, G. & Fuller, G. (2024). The SDGs and the UN Summit of the Future. Sustainable Development Report 2024. Dublin University Press, Dublin. https://dx.doi.org/10.25546/108572.
  31. Voicu Dan, D., Oana Marina, B., Bogdan Stefan, I. & Liliana, I.F. (2022). The Influence of ESG Factors on Financial Performance in the Banking Sector during the Covid-19 Pandemic. Economic Computation & Economic Cybernetics Studies & Research, 56(4), 71-88. https://dx.doi.10.24818/18423264/56.4.22.05.
  32. Yin, W., Zhu, Z., Kirkulak-Uludag, B. & Zhu, Y. (2021). The Determinants of Green Credit and Its Impact on the Performance of Chinese Banks. Journal of Cleaner Production, 286, 1-11. https://dx.doi.org/10.1016/j.jclepro.2020.124991.
  33. Yuan, D., Gazi, Md.A.I., Harymawan, I., Dhar, B.K. & Hossain, A.I. (2022). Profitability determining factors of banking sector: Panel data analysis of commercial banks in South Asian countries. Frontiers in Psychology, 13, 1-17. https://dx.doi.org/10.3389/fpsyg.2022.1000412.
  34. Yuen, M.K., Ngo, T., Le, T.D.Q. & Ho, T.H. (2022). The environment, social and governance (ESG) activities and profitability under COVID-19: evidence from the global banking sector. Journal of Economics and Development, 24(4), 345-364. https://dx.doi.org/10.1108/jed-08-2022-0136.
  35. Wang, Q., Zhang, Y., Li, Y. & Wang, P. (2024). ESG performance and green innovation in commercial banks: Evidence from China. PLOS ONE, 19(11), 1-18. https://dx.doi.org/10.1371/journal.pone.0308513.
  36. World Bank Group. (2024). World Development Indicators DataBank. https://databank.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG/1ff4a498/Popular-Indicators (Accessed: 22.10.2024).
Language: English
Page range: 28 - 44
Submitted on: Oct 22, 2024
Accepted on: Mar 19, 2025
Published on: Sep 18, 2025
Published by: University of Information Technology and Management in Rzeszow
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2025 Petra Jílková, Ladislava Knihová, Natálie Heroldová, published by University of Information Technology and Management in Rzeszow
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.