Climate protection as an opportunity for banks to increase earnings and consumer trust

Banks are currently facing numerous challenges. In addition to the ongoing cheap money policy of the European Central Bank, a regulated market environment and a rapidly progressive digitization, financial institutions are increasingly confronted with topics such as sustainability and climate protec...

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Main Authors: Sabrina Kiszka, Jessica Hastenteufel
Format: Article
Language:English
Published: AGH UNIVERSITY PRESS 2021-12-01
Series:Managerial Economics
Online Access:https://journals.agh.edu.pl/manage/article/view/4583
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author Sabrina Kiszka
Jessica Hastenteufel
author_facet Sabrina Kiszka
Jessica Hastenteufel
author_sort Sabrina Kiszka
collection DOAJ
description Banks are currently facing numerous challenges. In addition to the ongoing cheap money policy of the European Central Bank, a regulated market environment and a rapidly progressive digitization, financial institutions are increasingly confronted with topics such as sustainability and climate protection. From the latter derive not only risks but also chances for banks. Sustainability risks can impact different risk categories such as market risks, credit risks, operational risks, and liquidity risks. Moreover, reputational risks can occur in this context. This is especially important as bank customers constantly develop a greater awareness of ecological issues, and thus, develop increasing expectations on how companies – like banks – deal with issues like climate protection and sustainability. For this reason, we will start with a theoretical explanation of the key words and then present the results of our customer survey to highlight the current expectations of bank customers in the context of climate protection. Based on this, we formulate recommendations for banks on how to generate a competitive advantage by engaging in climate protection and by taking sustainable actions.
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series Managerial Economics
spelling doaj-art-4abb4fb091e04875b6c62755d5aee9c02024-12-19T16:07:14ZengAGH UNIVERSITY PRESSManagerial Economics1898-11432353-36172021-12-0122110.7494/manage.2021.22.1.7Climate protection as an opportunity for banks to increase earnings and consumer trustSabrina Kiszka0Jessica Hastenteufel1Saarland UniversityIU International University of Applied Sciences and a private lecturer at Saarland University Banks are currently facing numerous challenges. In addition to the ongoing cheap money policy of the European Central Bank, a regulated market environment and a rapidly progressive digitization, financial institutions are increasingly confronted with topics such as sustainability and climate protection. From the latter derive not only risks but also chances for banks. Sustainability risks can impact different risk categories such as market risks, credit risks, operational risks, and liquidity risks. Moreover, reputational risks can occur in this context. This is especially important as bank customers constantly develop a greater awareness of ecological issues, and thus, develop increasing expectations on how companies – like banks – deal with issues like climate protection and sustainability. For this reason, we will start with a theoretical explanation of the key words and then present the results of our customer survey to highlight the current expectations of bank customers in the context of climate protection. Based on this, we formulate recommendations for banks on how to generate a competitive advantage by engaging in climate protection and by taking sustainable actions. https://journals.agh.edu.pl/manage/article/view/4583
spellingShingle Sabrina Kiszka
Jessica Hastenteufel
Climate protection as an opportunity for banks to increase earnings and consumer trust
Managerial Economics
title Climate protection as an opportunity for banks to increase earnings and consumer trust
title_full Climate protection as an opportunity for banks to increase earnings and consumer trust
title_fullStr Climate protection as an opportunity for banks to increase earnings and consumer trust
title_full_unstemmed Climate protection as an opportunity for banks to increase earnings and consumer trust
title_short Climate protection as an opportunity for banks to increase earnings and consumer trust
title_sort climate protection as an opportunity for banks to increase earnings and consumer trust
url https://journals.agh.edu.pl/manage/article/view/4583
work_keys_str_mv AT sabrinakiszka climateprotectionasanopportunityforbankstoincreaseearningsandconsumertrust
AT jessicahastenteufel climateprotectionasanopportunityforbankstoincreaseearningsandconsumertrust