Ethics as a Way to Sustainability in Banking?
| Author: | Mgr. Radek Halamka |
|---|---|
| Year: | 2015 - summer |
| Leaders: | prof. PhDr. Petr Teplý Ph.D. |
| Consultants: | |
| Work type: | Finance, Financial Markets and Banking Masters |
| Language: | English |
| Pages: | 70 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/137879/ |
| Abstract: | This thesis proposes a theoretical framework for application of ethics in banking and analyses effects of such application on financial performance of banks. A sentiments-adjusted economic motivation enables employment of ethical concepts, such as universality and humanity, in economics as well as banking. Then, using Bankscope data of more than 80,000 bank-year observations for the years 2003-2013, it is shown that banks applying ethics have higher exposure to real economy and less volatile Return on Equity. A consequent analysis revealed that in comparison with their closest peers those banks have lower profitability caused by higher relative costs that conversely result in lower loan losses. |
