An Analysis of the Banking Sectors: The effect of Ecosystem Performance on Financial Stability

Shpresim Vranovci1& Ahmet Maloku2

https://doi.org/10.62271/pjc.16.2.761.782

Abstract
With an emphasis on the effects of regional differences and the COVID19 epidemic, this study examines the link between Environmental Performance Index (EPI) ratings and the financial performance of European banks while considering the role of governance and law. Our study, which uses panel data regressions spanning five years and 71 listed banks in 21 European nations, shows a negative link between EPI scores and bank performance, which is most
noticeable in Southern Europe. These results highlight the significance of taking regional variations in bank size and characteristics into account when assessing EPI performance in the banking industry.

Keywords: Governance, Law, Environmental Performance, Financial Performance, Banks, Sustainability.