How socially sustainable multinational banks promote financial inclusion in developing countries

Fernando Ubeda, Alvaro Mendez, Francisco Javier Forcadell and Belén López

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper investigates the impact of multinational banks (MNBs) implementing socially sustainable practices on financial inclusion in developing countries. We argue that the specific characteristics of the MNBs, when combined with socially sustainable practices, contribute to building trust and reducing risks in developing countries where they operate. This positive externality causes improvements for the underprivileged in three dimensions of financial inclusion: their demand for bank accounts, their propensity to save, and their access to credit. A sample of 152 multinational banks in 32 developing countries and 37,952 individuals proves the positive effect of sustainable practices.

Keywords: ESG criteria; sustainable banking; financial inclusion; multinational banks; SDGs; social sustainability (search for similar items in EconPapers)
JEL-codes: G21 O16 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2024-08-01
New Economics Papers: this item is included in nep-fdg, nep-fle and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Research in International Business and Finance, 1, August, 2024, 71. ISSN: 0275-5319

Downloads: (external link)
http://eprints.lse.ac.uk/124260/ Open access version. (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:124260

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().