Ethics as a Way to Sustainability in Banking?
|Author:||Mgr. Radek Halamka|
|Year:||2015 - summer|
|Leaders:|| prof. PhDr. Petr Teplý Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|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.