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Business Model as a Concept of Sustainability in the Banking Sector

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  • Renata Karkowska

    (Faculty of Management, University of Warsaw, 00-927 Warsaw, Poland)

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.

Suggested Citation

  • Renata Karkowska, 2019. "Business Model as a Concept of Sustainability in the Banking Sector," Sustainability, MDPI, vol. 12(1), pages 1-12, December.
    • Handle: RePEc:gam:jsusta:v:12:y:2019:i:1:p:111-:d:300809
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    References listed on IDEAS

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    Cited by:

    1. CUREA-PITORAC Ruxandra Ioana, 2020. "An Inquiry On Top Banks By Tier 1 Ranking From Central And Eastern Europe," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 64-73, December.
    2. Desheng Yin & Xinting Zhen, 2021. "Employment Protection and Banking Power: Evidence from Adoption of Wrongful Discharge Laws," Sustainability, MDPI, vol. 13(4), pages 1-22, February.
    3. Jasman Tuyon & Okey Peter Onyia & Aidi Ahmi & Chia-Hsing Huang, 2023. "Sustainable financial services: reflection and future perspectives," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(4), pages 664-690, December.
    4. Erum Shaikh & Muhammad Nawaz Tunio & Vishal Dagar, 2023. "Funding liquidity on bank lending growth: The case of India," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 19(4), pages 218-239.
    5. Paweł Dec & Piotr Masiukiewicz, 2021. "Socially Responsible Financial Products as a Contribution of Financial Institutions to Sustainable Development," Sustainability, MDPI, vol. 13(6), pages 1-10, March.

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