Banking, Competitiveness and Sustainability: The Perspective of the Three Global Actors: US, China, Europe
Nicolae Istudor, Dan Costin Nitescu, Valentin Florentin Dumitru, Cristian Anghel
Keywords:
competitiveness, financial crisis, profitability, sustainability, banking performance
Abstract:
The research presents the interrelationships between banking performance, competitiveness
and sustainability of the three banking systems and the impact of each sustainability variable
selected on the other macroeconomic indicators in short, medium and long-time horizon. The
empirical study involved the use of a panel Auto Regressive Vector methodology and was based
on macroeconomic indicators relevant to the performance of the banking system (return on
assets, return on equity, an annual growth rate of Gross Domestic Product), as well as indicators
that can be assimilated to sustainability (renewable fuels used, CO2 emissions). The dependent
variables were return on assets and the annual growth rate of Gross Domestic Product. The
global sample analyzed comprises 29 countries, spread over three continents (Europe, North
America, Asia), with data collected over a 10-years period (2011-2020). These countries together
account for approximately 62% of global GDP (data from 2020). The research results show that
as banks invest in green energy and sustainable products, competitiveness will also increase,
which will have a negative impact on profitability in the short term. In the medium and long
term, this impact will become positive also in terms of profitability increase. This strategic move
to develop sustainable business models and to finance a higher percentage of green investments
also adds extra competitive advantages, such as reputation and smart differentiation, from
other less sustainability-oriented banking systems. The process impacts the systemic level, the
macro perspective, the banking organizational level, the micro perspective, together with the
perception of the customers.
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 Banking, Competitiveness and Sustainability: The Perspective of the Three Global Actors: US, China, Europe [PDF file] [Filesize: 2.21 MB]
 10.7441/joc.2022.03.04
Istudor, N., Nitescu, D. C., Dumitru, V. F., & Anghel, C. (2022). Banking, Competitiveness and
Sustainability: The Perspective of the Three Global Actors: US, China, Europe. Journal of Competitiveness,
14(3), 59–75. https://doi.org/10.7441/joc.2022.03.04
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