This chapter analyses whether banks’ sustainability-oriented practices are factors that positively affect a bank’s operational efficiency. To achieve the aim of the study, a non-parametric Data Envelopment Analysis (DEA) is applied to calculate banking efficiency. Second, using a panel data analysis on a worldwide sample of 205 listed banks, observed for the period 2018–2023, the study assesses the impact of sustainability practices on bank efficiency. The findings indicate that governance and social practices significantly enhance banking efficiency, while environmental innovation poses short-term efficiency challenges due to high initial costs. As managerial implications, this chapter emphasizes the need for banks to strategically balance sustainability efforts with operational goals, aligning practices with regulatory requirements to achieve sustainable growth.
The impact of sustainability-oriented practices on banking efficiency. An analysis through DEA model.
Intonti M.
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2025-01-01
Abstract
This chapter analyses whether banks’ sustainability-oriented practices are factors that positively affect a bank’s operational efficiency. To achieve the aim of the study, a non-parametric Data Envelopment Analysis (DEA) is applied to calculate banking efficiency. Second, using a panel data analysis on a worldwide sample of 205 listed banks, observed for the period 2018–2023, the study assesses the impact of sustainability practices on bank efficiency. The findings indicate that governance and social practices significantly enhance banking efficiency, while environmental innovation poses short-term efficiency challenges due to high initial costs. As managerial implications, this chapter emphasizes the need for banks to strategically balance sustainability efforts with operational goals, aligning practices with regulatory requirements to achieve sustainable growth.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
