How environmental and social responsibility bolster financial stability in the banking sector: Evidence from Vietnam
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Author(s)Ngoc Mai TranLink to ORCID Index: https://orcid.org/0000-0001-7914-7563
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Manh Ha TranLink to ORCID Index: https://orcid.org/0000-0002-0452-9193
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DOIhttp://dx.doi.org/10.21511/bbs.20(3).2025.01
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Article InfoVolume 20 2025, Issue #3, pp. 1-12
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Creative Commons Attribution 4.0 International License
The implementation of corporate social responsibility (CSR) has evolved significantly in recent years, shifting from philanthropic objectives to strategic integration in Vietnam. The Government has determined the transition toward a green economy, highlighting the role of the banking industry in promoting green credit. However, adopting CSR requires a comprehensive understanding of its impact and whether it is merely a compliance cost or a strategic tool for enhancing financial stability. This study, therefore, examines the impact of CSR on the financial stability of listed commercial banks in Vietnam. Using an aggregate CSR index and its two specific dimensions, environmental and social, constructed through content analysis, the study evaluates their impact on the financial stability measured by the Z-score index. Ordinary least squares, fixed and random effect regression, feasible general least squares regression, and system generalized method of moments are applied to the sample of 19 banks over the period from 2013 to 2022. The findings demonstrate a positive relationship between social and environmental initiatives and financial stability, with the environmental pillar showing a particularly strong effect. Specifically, a 1 percent increase in CSR and environmental indices results in increases of 2.361 and 1.327 units in the Z-score, respectively. Eco-friendly practices in banking enhance financial stability, while the social dimension shows a more nuanced impact. The findings of this study provide implications for bank managers and government authorities in developing and promoting CSR practices.
Acknowledgment
The authors gratefully acknowledge the financial support from the Banking Academy of Vietnam.
- Keywords
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JEL Classification (Paper profile tab)M14, G32, G21
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References43
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Tables6
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Figures0
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- Table 1. Descriptive statistics
- Table 2. Pairwise correlations
- Table 3. Benchmark regression results for equation (5) with the CSR variable
- Table 4. Benchmark regression results for equation (6) with s_index and e_index
- Table 5. Dynamic regression
- Table A1. List of banks in the study
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Integrated reporting and financial performance of South African listed banks
Reon Matemane ,
Rozane Wentzel
doi: http://dx.doi.org/10.21511/bbs.14(2).2019.11
Banks and Bank Systems Volume 14, 2019 Issue #2 pp. 128-139 Views: 3106 Downloads: 602 TO CITE АНОТАЦІЯThe recent development of integrated reporting intends to address the limitations associated with corporate reporting practices. This paper aims to examine whether a statistically significant relationship exists between integrated reporting quality and financial performance. Secondary data was used, namely the integrated reports and annual financial statements of South African banks listed on the Johannesburg Stock Exchange (JSE) for 2010–2014. For the period 2005–2009, only the financial statements were used, since integrated reporting was not yet mandatory. The research design was longitudinal and it combined qualitative and quantitative methods. Descriptive statistics and Feasible Generalized Least Square (FGLS) were used to explore the relationships between financial performance and integrated reporting quality. The results indicate that there is a positive relationship between integrated reporting quality (IRQ) and earnings per share (EPS). However, there is no significant relationship between IRQ and Tobin’s q (Q-Ratio), IRQ and return on equity (ROE), IRQ and return on assets (ROA) as well as IRQ and economic value added (EVA). Moreover, there are no significant differences on the financial performance of the listed banks before and after the introduction of integrated reporting.
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The role of financial inclusion in financial stability: lesson from Jordan
Mohammad O. Al-Smadi
doi: http://dx.doi.org/10.21511/bbs.13(4).2018.03
Banks and Bank Systems Volume 13, 2018 Issue #4 pp. 31-39 Views: 2384 Downloads: 414 TO CITE АНОТАЦІЯThis study aims to examine the relationship between financial inclusion and financial stability in Jordan by using Fully Modified Least Squares (FMOLS) technique. The analysis is based on time series from 2006 to 2017. Jordanian financial inclusion index is developed to assess the level of financial inclusion, whereas financial stability was measured by Jordanian financial stability index proposed by Central Bank of Jordan. The results show a weak significant and positive impact of financial inclusion on the financial stability in Jordan. Additionally, five control variables are used in the study. The results show a negative impact of domestic credit to private sector, income inequality, financial integration, and global financial crisis on financial stability. In contrast, real GDP per capita has a significant and positive impact. It is expected that the findings of the study can be used by policy makers and supervising authorities to realize the objectives of the national strategy of financial inclusion in Jordan.
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The impact of emotional intelligence, employee empowerment and cultural intelligence on commercial bank employees’ job satisfaction
Ayeasha Akhter ,
Md. Mobarak Karim 
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K. M. Anwarul Islam
doi: http://dx.doi.org/10.21511/bbs.16(4).2021.02
Banks and Bank Systems Volume 16, 2021 Issue #4 pp. 11-21 Views: 2384 Downloads: 609 TO CITE АНОТАЦІЯThis paper aims to examine the impact of emotional intelligence (EQ), employee empowerment (EE), and cultural intelligence (CQ) on commercial bank employees’ job satisfaction in Bangladesh. For this purpose, a survey questionnaire was developed based on pre-tested constructs. The study used a convenience sampling technique, supplemented by a non-probability sampling method. 200 bank employees were invited to participate in the survey; finally, 130 responses were received as fully complete, with a 65% response rate. Hence, the sample size is n = 130. Cronbach’s alpha value was used to determine the internal consistency of the study constructs. SPSS version 26.0 was used to analyze the correlation test and hypotheses test. The findings show that emotional intelligence (EQ) with a beta (β) value of 0.510 has a statistical and positive effect on bank employees’ job satisfaction. Also, employee empowerment (EE) with a beta value of (β) 0.418 and cultural intelligence (CQ) with a beta (β) of 0.372 were found to be significant predictors of job satisfaction. This indicates that bank managers should utilize EQ and CQ to increase bank employee satisfaction and focus on employee engagement at the workplace. According to the study, if bank employees become more emotionally stable and culturally intelligent at their workplace, they will be more satisfied with their current jobs. Besides, if bank employees are given more opportunities to carry out their job responsibilities, they will be more satisfied with their jobs. The paper outlines several significant implications for commercial bank managers and offers some notable directions for future research.
