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ESG practices and bank deposits: evidence from the covid-19 pandemic
June 16, 2023 @ 12:00 - 13:00
This paper investigates the effect of banks’ ESG performance on deposit flows and rates on a sample of 177 listed US bank holding companies around the Covid-19 outbreak. We find that, during the crisis triggered by the pandemic, depositors reward high ESG banks by requiring lower rates on interest-bearing deposits and increasing the supply of noninterest-bearing deposits. Interestingly, we also find that the social and, to a lesser extent, the environmental dimensions drive the positive effect of banks’ ESG performance on deposits. Our results reveal the strategic importance of CSR engagement in the banking industry.
- Jonathan Williams
- Alessio Bongiovanni
Jonathan Williams is Professor of Finance and Accounting at Surrey Business School. A banking and finance specialist, he is also Visiting Professor at the University of Turin, the University of Malta, and Zhejiang University of Finance and Economics. Professor Williams is the Chair of the European Association of Teachers of Banking and Finance (The Wolpertinger Group), Treasurer of the Financial Markets and Institutions Special Interest Group of BAFA (British Accounting and Finance Association), and a member of the Chartered Banker Institute’s Quality and Standards Committee. He has published in leading international journals including the Journal of Corporate Finance, Journal of Banking and Finance, Journal of Financial Stability, and Regional Studies amongst others. He has presented his research at institutions including The World Bank and Deutsche Bundesbank and at conferences and universities in countries across the world. His current research interests include executive compensation and corporate governance, financial deregulation and competitiveness, and FinTech. He is co-author of Disruptive Technology in Banking and Finance: An International Perspective on FinTech (2021).
Alessio Bongiovanni is Assistant Professor of Financial Management and Institutions at the School of Management and Economics, University of Turin, Italy. He has held visiting positions at the Bank of Lithuania, the University of Orléans and Bangor University. His research focuses on bank stability and risk, corporate governance and sustainable finance. He holds a PhD in Financial Markets and Institutions from the University of Turin, Italy. His research has been published in leading international journals such as the British Journal of Management and Journal of Empirical Finance.