For a long time, the success of the banking industry was measured almost exclusively by its performance. Developments in the last decade have shown the importance of having sustainable success in international finance. Measuring success purely by the short-term profits that are generated, leads to a banking sector that is quite simply not sustainable.
The importance of sustainable banking is starting to be recognized everywhere. Attempts aimed at finding financial solutions for valuing the world’s rainforests, designing optimal contracts for micro-finance lending, implementing macro and monetary policies that facilitate risk-sharing and enhance stability, or improving risk management techniques to enhance the absorptive capacity of financial institutions all have one thing in common: the creation of a more sustainable banking system.
At ECCE, we view sustainability in finance as something that concerns both the individual firm and the industry at large. Moreover, we believe sustainability requires a safe, sound and stable banking system, as well as a banking system that contributes to economic growth and development in a sustainable manner. Current sustainable banking projects cover micro-finance, speculation and commodity prices and the finance-growth nexus.
Practice What You Preach
16-04-13 | Jaap W.B. Bos | Matteo Millone | Does the focus on financial versus social performance affect the efficiency of double bottom line firms? The case of microfinance institutions. Unlike purely profit oriented firms, double bottom line firms care about both financial and social performance. Some firms prioritize profits, while other give higher importance to social and environmental impact. Depending on their preferences, double-bottom line firms will choose different output mixes, inputs and production...Read full research
ECCE Research Fellow
Stefanie Kleimeier earned a doctorate at the University of Georgia (USA) and is currently Associate Professor of Finance at the Maastricht University in the Netherlands. Her research focusses on project finance, syndicated loans, retail banking, financial market linkages and integration and has been published in academic journals including the Journal of Financial...More about this author
Jaap W.B. Bos
ECCE Research Fellow
Jaap Bos is an Associate Professor of Finance at Maastricht University. His work has been published in the Journal of Business, the European Economic Review, the Journal of Development Economics and the Journal of Banking and Finance. His research interests include the role of productivity differences, spillovers and innovation in explaining economic growth, and the...More about this author