| Abstract [eng] |
Relevance of the topic. Sustainability is increasingly recognized as an important factor in economic growth. Every economy now considers environmental protection and social justice to be fundamental, so banks and financial institutions should create a sustainable environment that can help them reap significant benefits and apply sustainability practices in their activities. Growing awareness of sustainability is driven by global challenges such as climate change, social inequality, and corporate governance failures. Sustainable finance has therefore become a key driver of this transformation, encompassing investment practices that help to generate positive environmental and social benefits alongside financial returns. As the banking sector is one of the fastest growing in the world and contributes significantly to a country's social and economic progress, allocating funds to sustainability should be seen not as an expense but as a way to strengthen relationships with stakeholders and increase the likelihood that these investments will yield significant benefits. Banks and other financial institutions should be seen as model companies that participate in social initiatives that improve the economy, the environment, and society. The object of paper – Implementation of Sustainable Banking Principles in Lithuanian Banking Sector. Paper‘s objective – To assess the implementation of sustainable banking principles in the Lithuanian banking sector. Paper tasks: 1. Present theoretical information on the concept and principles of sustainable development, discussing the principles of sustainable banking and the assessment of the implementation of sustainable banking principles. 2. Analyze other authors' research related to the implementation of sustainable banking principles and statistical data, and develop a research methodology. 3. Conduct a qualitative assessment of the implementation of sustainability principles in the Lithuanian banking sector based on information provided in banks' social responsibility reports. 4. Conduct a quantitative assessment of the implementation of sustainability principles in the Lithuanian banking sector in order to determine how the implementation of sustainable banking principles is related to the financial stability of banks by assessing the relationship with the CAMEL index of banks. Conclusions. The qualitative study revealed that Scandinavian-owned banks operating in the Lithuanian banking sector disclose more information about the implementation of sustainable banking principles in their social reporting. The quantitative study produced a regression equation showing that as the economic index increases, the financial stability of the bank tends to increase, while as the social and environmental indices increase, the assessment of the bank's financial condition deteriorates. Scope of paper. The work consists of an introduction, three parts, and conclusions. The work comprises 91 pages. The material is presented on 57 pages, including 5 figures and 18 tables. The list of references includes 44 scientific and 47 informational sources. The list of appendices includes 4 sources. |
