Sustainable banking and trust in the global South

Ubeda, Fernando, Mendez, Alvaro ORCID: 0000-0002-0919-5081 and Forcadell, Francisco Javier (2024) Sustainable banking and trust in the global South. Global Policy, 15 (S1). 34 - 44. ISSN 1758-5880

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Abstract

Trust in banking plays a significant role in promoting financial inclusion. Multinational banks (MNBs) have the potential to enhance trust by adopting sustainable banking practices. We investigate the impact of MNBs' adoption of ESG (Environmental, Social and Governance) practices on trust in banking in 38 developing countries. Using an instrumental variable approach and control function estimation, our findings indicate that sustainable practices by commercial MNBs are positively and significantly associated with increased trust in banking. The results remain consistent across different samples, lending robustness to our findings. By demonstrating the importance of sustainable banking in fostering trust, this study contributes to the limited literature on trust in banking in the global South.

Item Type:	Article
Official URL:	https://onlinelibrary.wiley.com/journal/17585899
Additional Information:	© 2024 The Authors
Divisions:	International Relations
Subjects:	H Social Sciences > HG Finance
JEL classification:	G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
Date Deposited:	08 Apr 2024 11:27
Last Modified:	12 Dec 2024 04:07
URI:	http://eprints.lse.ac.uk/id/eprint/122554

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