The Contribution of ESG Information to the Financial Stability of European Banks

Nowadays more and economic actors publish information regarding sustainability, through (E), social (S), governance (G) performance. In the case of banks, ESG performance is important as they affect most industries their investments loans. this research our aim to investigate relationship between financial stability We applied panel regressive methods during analysis. The sample consisted stock exchange listed lending institutions (243 banks) from European Union (EU) Free Trade Association (EFTA). Our results show that reduced ratio non-performing loans significantly. Furthermore, positive effect regulatory capital has been confirmed. Consequently, we can assert economic, social, have beneficial impacts on stability. Therefore, consideration these pieces should be for investors regulators well.