Work detail

Ethics as a Way to Sustainability in Banking?

Author: Mgr. Radek Halamka
Year: 2015 - summer
Leaders: doc. 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.

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