Circular Economy and Banking Industry in the Digital Age: Case Study of Erste Bank a.d. Novi Sad

Abstract

Circular economy, as a concept that requires a multidisciplinary, holistic approach, as well as involvement of many different stakeholders, is becoming the subject of interest not only in the wide academic community, but also practitioners. One of the factors that greatly contributed to the development of the circular economy is modern digital technologies and their massive application. The aim of this paper is to point out the role and importance of the commercial banks in the application of circular economy in the digital age. Among various stakeholders in the Republic of Serbia, commercial banks, as the most important segment of the financial sector, should be specially emphasized. Banks have already included the aspect of energy efficiency, environmental protection, and other areas that speed up the development of the circular economy in their credit risk policies. On the one hand, commercial banks need to provide sufficient funding to circular businesses, while on the other hand they need to make internal transition from a linear toward circular economy. The key conclusion is that engagement of commercial banks in the circular economy in the digital age contributes to the socially responsible behavior, as well as to the greater profitability and competitiveness.