The Organizational and Economic Framework for Ensuring Bank Competitiveness Based on ESG Principles

Анотація

The aim of this article is to substantiate the organizational and economic mechanism for ensuring the competitiveness of banking institutions based on ESG principles and to develop practical recommendations for its implementation in the operations of Ukrainian banks in the context of European integration and postwar recovery. The article systematizes the organizational components of implementing ESG principles in bank operations across three management levels: strategic, tactical, and operational. Economic instruments for promoting ESG transformation in the banking sector are identified and classified according to application levels: the macro level includes differentiated capital standards and tax incentives, the meso level comprises refinancing programs and guarantees from international financial organizations, and the micro level covers green pricing and the issuance of green bonds. An organizational and economic mechanism has been developed to ensure the bank’s competitiveness based on ESG principles, integrating organizational structures, economic incentives, and process components. The mechanism includes four consecutive implementation stages – from assessing ESG maturity to entering the green bond market and participating in international ratings. A system of performance indicators for the mechanism has been substantiated, covering financial, risk, and reputational indicators of the bank’s activities. Further research should focus on developing an integrated methodology to evaluate the impact of ESG factors on banks’ competitiveness, taking into account the specifics of the Ukrainian market, constructing econometric models of the relationship between a bank’s ESG maturity level and its financial performance, studying mechanisms for financing Ukraine’s green recovery by the banking sector, and developing recommendations for harmonizing national ESG standards with European requirements.

Класифікація

Ідентифікатори

Схожі роботи