The Role of Banks in Promoting Financial Sustainability

Abstract

In a context characterised by global pressures and a growing awareness of the interdependence between the economy and the environment, financial sustainability has emerged as a key priority on banks’agenda. The financial sustainability of banks plays a crucial role in a nation’s economic well-being, commonly regarded as an indicator of a country’s financial and economic stability, beyond their primary function of facilitating financial transactions. The study aims to investigate how banks can contribute to achieving sustainable development goals through green financial instruments, digitisation and the promotion of financial literacy. The tasks of the analytical study are to identify the main green financial instruments utilized by banks to support sustainable projects and analyze the importance of financial literacy in increasing awareness and adoption of sustainable banking products. The main conclusions and findings could be used to improve the banking practices aimed at enhancing the financial resilience of the overall economy. CZU: 336.71:005.523(478); JEL: Q50; Q51; Q55;