Bank Sustainability Analysis

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In order to encourage the banking sector to adopt the sustainability as a business strategy for banks, this research presents a number of potential benefits of adopting sustainability in the banking sector. In reality, sustainability can bring many benefits to a bank’s overall business performance. Given below is a brief summary of the resulting benefits for banks following a sustainability strategy (Hoijtink, 2005): 1. Sustainability will lead to stronger bank's reputation and better brand name. Being a part of the global environmental movement adds value to the bank's reputation besides the bank will be positively ranked. 2. Sustainability will lead to increase bank's profitability and higher banks' long-term returns as sustainability will…show more content…
Sustainability will lead to improve the bank's access to international financing; sustainable banks will have better access to capital from international financial organizations. 5. Sustainability will increase the bank's market value. Banks follow a sustainability strategy create long-term value for themselves, their shareholders and their clients. 6. Sustainability will increase the bank's competitive advantage. Banks increase their competitive advantage by following a sustainability strategy as sustainability will lead to a promotion of new innovation within the bank. This happens while the bank is searching for new solutions to integrate sustainable development in its operations and practices. This could result again into increased competitiveness. 7. Sustainability will lead to reduced risks for banks. Integrate sustainability considerations into bank's practices leads to better risk management. Sustainable banks adopt effective risk management and avoid excessive risk-taking behavior which leads to managing risks, avoiding high losses, and allowing smoother operations. 8. Sustainability will offer several new business opportunities to the bank. A growing group of these opportunities includes renewable energy, energy efficiency, cleaner production processes and technologies, and…show more content…
Sustainability will help in improving the bank's image in the community, as well as, it will help the bank to improve its community relations. 12. Sustainability will help the bank to hire the best employees as good employees can usually choose between several banks to work for and they will choose for banks that take good care of their employees and their society at large. 13. Sustainability will help the banks to improve their own products and services. In addition, sustainability will help the banks to offer several innovative product and services in new areas related to sustainability. This involves creating financial products and services that support commercial development of products or activities with social and environmental benefits. 14. Sustainability will help the bank to avoid many of the impacts of the financial crisis. Sustainable banks will be resistant to the financial shock and will able to avoid the worst impact of the crisis and maintain profitability derives from sustainable businesses that deliver explicit social, environmental and cultural

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