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The global emphasis on sustainability is driving organizations to embrace financial technology (Fintech) solutions as a means of enhancing their sustainable performance. This study seeks to unveil the intermediary role played by green finance and competitiveness, along with the moderating impact of digital transformation (DT), in the intricate relationship between Fintech adoption and sustainable performance.

Drawing on existing literature, we construct a comprehensive conceptual framework to thoroughly analyse these interconnected variables. To empirical validate of our model, a dual structural equation modelling–artificial neural network) SEM–ANN approach was employed, adding a robust layer of validation to our study’s proposed framework. A sample of 438 banking employees in Pakistan was collected using a simple random sampling technique, with 411 samples deemed suitable for subsequent analysis. Initially, data scrutiny and hypothesis testing were carried out using Smart-PLS 4.0 and SPSS-23. Subsequently, the ANN technique was utilized to assess the importance of exogenous factors in forecasting endogenous factors.

The findings from this research underscore the direct and significant influence of Fintech adoption and DT on the sustainable performance of banks. Notably, green finance and competitiveness emerge as pivotal mediators, bridging the gap between Fintech adoption and sustainable performance. Moreover, DT emerges as a critical moderator, shaping the relationships between Fintech adoption and both green finance and competitiveness. The integration of the ANN approach enhances the SEM analysis, providing deeper insights and a more comprehensive understanding of the subject matter.

This study contributes to the enhanced comprehension of Fintech, green finance, competitiveness, DT and the sustainable performance of banks. Recognizing the importance of amalgamating Fintech adoption, green finance and transformational leadership becomes essential for elevating the sustainable performance of banks. The insights garnered from this study hold valuable implications for policymakers, practitioners and scholars aiming to enhance the sustainable performance of banks within the competitive business landscape.

The novel coronavirus (COVID-19) has caused financial stress and limited their lending agility, resulting in more non-performing loans (NPLs) and lower performance during the II wave of the coronavirus crisis. Therefore, it is essential to identify the risky factors influencing the financial performance of Indian banks spanning 2018–2022.

Our sample consists of a balanced panel dataset of 75 scheduled commercial banks from three different ownership groups, including public, private and foreign banks, that were actively engaged in their operations during 2018–2022. Factor identification is performed via a fixed-effects model (FEM) that solves the issue of heterogeneity across different with banks over time. Additionally, to ensure the robustness of our findings, we also identify the risky drivers of the financial performance of Indian banks using an alternative measure, the pooled ordinary least squares (OLS) model.

Empirical evidence indicates that default risk, solvency risk and COVAR reduce financial performance in India. However, high liquidity, Z-score and the COVID-19 crisis enhance the financial performance of Indian banks. Unsystematic risk and systemic risk factors play an important role in determining the prognosis of COVID-19. The study supports the “bad-management,” “moral hazard” and “tail risk spillover of a single bank to the system” hypotheses. Public sector banks (PSBs) have considerable potential to achieve financial performance while controlling unsystematic risk and exogenous shocks relative to their peer group. Finally, robustness check estimates confirm the coefficients of the main model.

This study contributes to the knowledge in the banking literature by identifying risk factors that may affect financial performance during a crisis nexus and providing information about preventive measures. These insights are valuable to bankers, academics, managers and regulators for policy formulation. The findings of this paper provide important insights by considering all the risk factors that may be responsible for reducing the probability of financial performance in the banking system of an emerging market economy.

The empirical analysis has been done with a fresh perspective to consider unsystematic risk, systemic risk and exogenous risk (COVID-19) with the financial performance of Indian banks. Furthermore, none of the existing banking literature explicitly explores the drivers of the I and II waves of COVID-19 while considering COVID-19 as a dependent variable. Therefore, the aim of the present study is to make efforts in this direction.

This study aims to examine the effect of ownership structure on financial performance of commercial banks in Kenya.

The data were collected from audited financial statements of 39 commercial banks in Kenya for the period 2009–2020.

Regression results found evidence of ownership structure explaining commercial banks’ financial performance. The results found a negative association between state ownership and net interest margin, a negative association between management ownership and net interest margin and a negative association between institutional ownership and return on assets.

Based on the findings, commercial bank management should therefore devise ownership structure policies that are geared toward boosting their financial performance both in the short run and the long run. Second, this study recommends a minority shareholding of the state in commercial banks to deter political interference, protect investors’ wealth from erosion and allow the majority shareholders to adopt a strong corporate governance mechanism for higher financial performance. Banks with a high percentage of state ownership should consider partial privatization to improve corporate governance practices. Third, banks should adopt a managerial ownership policy limiting the proportion of equity stock held by executives to limit their powers in strategic decision-making. Fourth, this study proposes a percentage limit on the equity stock of an institutional investor to eliminate bureaucracy in strategic decision-making and protect investors’ wealth.

The study finding is meant to inform regulation and operation policies in the banking sector and contribute to the literature on ownership structure, especially in the banking sector.

This research examines the bidirectional relationship between Environmental, Social and Governance (ESG) voluntary disclosure engagement and financial performance of a panel of banks extracted from the Gulf Cooperation Council (GCC) banking industry, covering a period of 11 years (2007–2017). We find that GCC banks, and in particular Islamic banks, voluntarily disclose low level of information related to ESG activities. Using system GMM methodology, we provide evidence that ESG disclosure adversely affects bank performance, regardless of the bank performance measure used. Thus spending on ESG turns out to be costly for GCC banks, a result that is consistent with the agency problem, where managers are likely to reduce long-term expenditures related to ESG actions in order to boost short-term profits. As managers' compensations often relate to short-term financial performance, managers tend to reduce their spending on ESG activities. Furthermore, contrary to previous research, our results indicate that the relationship between ESG and financial performance is bidirectional and dynamic. We also find evidence that ESG disclosure positively affects performance only for well-diversified banks. Finally, although conventional banks disclose significantly more information related to ESG activities, we do not find any significant differences between the two types of banks in the relationship between ESG disclosure and performance. Our suggestion is that these results are consistent with what we call “clientele” and “gravitation” effects, where a customer tends to choose to deal with the bank that reflects his religious beliefs (gravitation effect) and with the bank that provides him with the best services (clientele effect) regardless of its ESG disclosure.

Introduction: Decision making is always based on several factors which may affect the possible outcomes, especially in financial markets. Instead of having many criteria which may be required for decision making, “Multiple Criteria Decision Making” (MCDM) models might be used as a tool to reduce all criteria into a single one.

Purpose: The aim of this study is to measure the financial performance of commercial banks listed on Borsa Istanbul (BIST) by the MCDM.

Method: To this end, data from 15 different financial ratios from 11 commercial banks were used between the periods of 2002 and 2018. Both TOPSIS and gray relational analysis (GRA) models were used, which are commonly used in the literature for detecting the financial performance of listed banks in BIST based on their consolidated financial statements.

Results: According to the TOPSIS method, while the best bank is QNB Finansbank, HALKB, a public bank, was determined as the best bank using the GRA method. There is no significant correlation between financial performance indicators and market returns obtained by either method, with exceptions. There is no generally significant correlation detected between financial ratios and market returns. Accordingly, it is concluded that the bank stock prices in the study are shaped by the influence of external factors and expectations. The study results include information that can be used for different purposes among bank managers, academics and financial investors.

The banking industry faces increasing scrutiny from stakeholders regarding its environmental and social impacts, given its crucial role in fostering economic growth. Banks have been encouraged to adopt environmental, social and governance (ESG) practices to mitigate risks and safeguard their reputation. However, the effectiveness of ESG sensitivity within the banking industry is contingent upon ownership and structural factors. The extent to which banks can integrate ESG considerations into their operations and decision-making processes may vary based on their ownership structures. Therefore, this study aims to examine if the impact of ESG on the performance of Indian banks varies between private and public sector banks.

The study employs six years of panel data from two separate samples of 12 private sector banks and 10 public sector banks in India. It utilises fixed and random effect estimation techniques with robust standard errors to derive accurate and reliable econometric results.

The main findings of this study reveal intriguing insights into the relationship between ESG factors and bank performance, considering the influence of ownership structure. For private sector banks, the ESG composite score, particularly the social dimension, negatively impacts financial performance. However, there is a contrasting positive effect on efficiency. In contrast, public sector banks demonstrate a positive and significant association between the environmental score and return on equity and non-performing assets.

The findings highlight the need for tailored strategies that align with ownership structure to achieve sustainable financial and societal outcomes in the banking industry. Furthermore, it emphasises the need for private-sector banks to streamline their ESG initiatives, especially in the social dimension, to mitigate negative impacts on their financial performance.

This study introduces a novel dimension by addressing the “one size fits all” bias in prior research that overlooked bank ownership differences when examining the impact of ESG factors on bank performance.

Growing concern over sustainability adoption has presented an array of challenges to businesses. While vital to an economy's success, banking is not immune to societal, environmental and economic consequences of business practices. The study has examined the sustainable performance of banking institutions on the suggested multidimensional framework comprising economic, environmental, social, governance and financial dimensions and 52 sustainability indicators. The study benchmarks the significant performance indicators of leading banks indispensable to sustainable banking performance. The findings attempt to address research questions concerning the extent of sustainable banking performance, ranking the sustainability dimensions and indicators and standardizing sustainability adoption metrics.

To determine the responsiveness of the banking industry to sustainability dimensions, content analysis was conducted using NVivo software for the year 2021–2022. Furthermore, a hybrid multicriteria decision-making (MCDM) approach is used by integrating entropy, the technique for order preference by similarity to ideal solution (TOPSIS) and VlseKriterijumska Optimizacija KOmpromisno Resenje (VIKOR) to provide relative weights to performance indicators and prioritize banks based on their sustainable performance. Sensitivity analysis is used to ensure the robustness of results.

In the context of the Indian banking industry, the pattern of sustainability reporting is inconsistent and concentrated on addressing environmental and social concerns. The results of the entropy methodology prioritized “Environmental” sustainability over other selected dimensions while “Financial” dimension has been assigned the least priority in the ranking order. The significant sustainable performance indicators delineated in this study should be used as standards to ensure the accountability and credibility of the sustainable banking industry. Additionally, the research findings will provide valuable inputs to policymakers and regulators to assure better contribution of the banking sector in meeting sustainability goals.

Considering the paucity of studies on sustainable banking performance, this study makes two significant contributions to the literature. First, the suggested multidimensional disclosure model integrating financial and nonfinancial indicators would facilitate banking institutions in addressing the five aspects of sustainability. As one of the first studies in the context of the Indian banking industry, the findings would pave the way for better diffusion of sustainability practices. Second, the inclusion of MCDM techniques prioritizes the significance of sustainability indicators and benchmarks the performance of leading banks to achieve better profits and more substantial growth.

The purpose of this study is twofold. The first is to examine the impact of environmental disclosure on banks’ performance, while the second is to investigate the moderating role of a country’s economic activities and institutional quality on the relationship between environmental activities disclosure and banks’ operational, financial and market performance.

The sample includes 246 banks from emerging markets from 2008 to 2020, comprising 1,899 bank-year observations. The independent regressors are environmental disclosure, two moderators and two sets of control (bank and country) variables. The dependent variables are return on assets, return on equity and Tobin’s Q. This study adopts ordinary least squares, panel fixed effect and instrumental variables generalized method of moments to estimate the parameters of the models.

This study reveals a negative relationship between environmental disclosure and bank performance, lending credence to the agency and neoclassical theories. The moderator regressors show positive influence on banks performance. The results indicate that it is difficult to make a business case for environmental commitment.

There is a need for effective monitoring by shareholders to ensure that funds allocated for environmental activities are spent wisely.

This study provides new evidence on the ways in which economic and institutional quality influence the environmental practices of banks in emerging and frontier markets.

This research investigated whether corporate social responsibility (CSR) can alleviate the negative effect of non-performing loans (NPLs) on bank performance.

The research employed a sample of European banks over the 2008–2017 period. To resolve endogeneity and heterogeneity problems, the system generalized method of moments (SGMM) model was employed.

First, bank NPLs were negatively and significantly associated with bank performance as measured by the Q-Tobin ratio and the return on assets (ROA). Second, CSR scores exerted a negative and significant effect on the level of NPLs. Finally, the results indicated that bank performance could benefit from the interactional effect of CSR and NPLs.

This study fills the gap in the debate over the mediating role of CSR in the NPLs – bank performance interrelation. In addition, our SGMM analysis yielded more robust and efficient results while resolving endogeneity and heterogeneity problems concerning CSR and bank performance or risk in corporate finance.

CSR practices can play an essential mediating role in the NPLs–bank performance relationship. CSR activities in the European context may reduce the level of NPLs and increase bank performance.

To the best of the authors’ knowledge, studies of the implications of CSR activities on the banking sector are very limited. Indeed, this paper shows that CSR mediates the relationship between CSR practices and NPLs. The results suggest that bank performance could benefit from the interactional effect of CSR and NPLs.

Every shock, starting from the banking sector reform in 1992 to the global crisis due to Covid-19 pandemic, affects the performance of banks. The shocks and transformations jeopardise the bank’s performance. This study cover period of 30 years starting from 1992. So, the reason behind taking only public sector banks is that after 1991–92 many banking sector reforms took place, and many new private sector banks and foreign sector banks entered into competition due to the liberalization, privatization, globalization (LPG) policy. So, it has been difficult for public sector bank to manage their performance in a competitive market. So, the purpose of this study is to find out influencing factors of bank performance especially public sector bank, because, it has been vital to identify factors influencing their performance.

The current study explores the determinant of the performance of public sector banks in India. Currently, in India, 12 banks are public sector banks, which capture 59.8% market share in the banking industry. After 1994 new licences were issued by Reserve Bank of India for many banks, and foreign sector banks entered the market as an effect of LPG policy, and market competition is one of the significant determinants of the performance of banks. Thus, the panel regression model is used to analyse the impact of various determinants on the performance of public sector banks (from 1992 to 2021). Return on equity and return on assets are used as indicators of performance, whereas influencing factors are divided into two parts, bank-specific factors, which include bank size, asset quality (AQ), liquidity, credit deposit ratio (CDR), capital adequacy, debt-equity ratio, employee’s productivity and macroeconomic factors which include inflation rate, tax rate and gross domestic product (GDP).

Results of the study show that bank size is not an essential factor for measuring bank performance because it is insignificant with both indicators of performance. AQ, liquidity ratio and CDR are significant in both models with negative impact. Macroeconomic factors like GDP are insignificant with both indicators with positive relations and tax rates are significant with a positive relationship. The inflation rate is significant but affects negatively to performance.

This study only focuses on public sector banks. So, the results for private and foreign sector banks might differ. Considering the larger market share compared to other sector banks, the authors are focusing on public sector banks only. Foreign banks and cooperative banks are not included current analysis because of huge numbers and different working environments.

Determining influencing factors of bank performance is crucial because it will help the bank take various policy implications and formulation. Since independence measuring bank performance are important area.