Social Responsibility and Bank Resiliency

Social Sustainability in European Banks: A Machine Learning Approach Using Interval-Based Composite Indicators

“…This study aim to propose a first analysis on the reporting and disclosure of social information in the sustainable banking sector, with the aim of improving this area, developing dissemination initiatives and proposing an overall CSR. Thus, the increasing attention to ESG (in particular to the social component) in organizations and especially in the banking sector is confirmed by our results and statistics contributing to existing literature (Lopez-Penabad et al, 2022;Batae et al, 2021;Ahmad et al, 2021;Simsek & Cankaya, 2021;Neitzart & Petras, 2021;Gehrig et al, 2021;Di Tommaso & Thornton, 2020;Shakil et al, 2019;Mirallas-Quiros et al, 2019).…”

“…However, there is only a statistically significant risk-reducing effect on default risk, not portfolio risk (Neitzart & Petras, 2021). On the other hand, product responsibility, investments in social and human rights, or workforce training significantly enhance resiliency; the responsibility score significantly reduces exposure and contribution risk; and the workforce score reduces exposure to risk and insolvency risk (Gehrig et al, 2021). In addition, bank fragility is analyzed: composite ESG score lower bank fragility, with an higher impact of the social dimension and a different impact that depends on banks' characteristics and operating environments.…”

Resilience: A Critical Appraisal of the State of Research for Business and Society

“…( 2019 ) and Gehrig et al. ( 2022 ) document a lower level of systemic risk exposures, and hence a higher level of capitalization and resilience, for banks that reflect a longer planning horizon based on their investments in socially responsibility measures. These findings suggest that bank planning horizon positively contributes to bank capitalization and, ultimately, bank resiliency.…”

A New Approach to Sustainable Financial Stability and its Prospects

“…Due to the specific nature of the data used, there are relatively few studies that explicitly assess the impact of the social component of the ESG agenda on financial stability. Gehrig et al (2021) studied the impact of the social component of the ESG agenda on the systemic risk of banks, approximated by conditional capital shortage (SRISK) and conditional value at risk (CoVaR). The notional value at risk implies an assessment for the financial system as a whole when individual institutions are under financial stress (see Adrian and Brunnermeier, 2016).…”