The nexus of sustainable development, blue financing, digitalization, and financial intermediation

Shan, S ORCID: https://orcid.org/0000-0003-4928-588X, Mirza, N, Umar, M and Hasnaoui, A, 2023. The nexus of sustainable development, blue financing, digitalization, and financial intermediation. Technological Forecasting and Social Change, 195: 122772. ISSN 0040-1625

Text 1867020_Shan.pdf - Post-print Full-text access embargoed until 15 August 2025. Download (493kB)

Abstract

Financial intermediaries are essential for advancing circular and blue economies by providing critical financial support to sustainable ventures. However, sustainability efforts may lack persistence without appropriate incentives. This paper aims to investigate the impact of lending to blue and sustainable firms, as well as increased digitalization, on the performance of the banking sector. Using a comprehensive sample of banks from twenty-seven member states of the European Union over 11 years, our findings reveal a positive association between banking performance and blue lending, sustainable credit, and digitalization. Specifically, we observe that an increase in banks' financing to blue and other sustainable firms, along with higher investments in digitalization, leads to a rise in the net interest margin. Similarly, the solvency risk will be reduced when the exposure to sustainable firms is higher. Likewise, investment in digitalization will lower banking risks. These empirical results manifest significant implications for sustainable development, blue economy firms, and the banking sector at large.

Item Type:	Journal article
Publication Title:	Technological Forecasting and Social Change
Creators:	Shan, S., Mirza, N., Umar, M. and Hasnaoui, A.
Publisher:	Elsevier BV
Date:	October 2023
Volume:	195
ISSN:	0040-1625
Identifiers:	Number Type 10.1016/j.techfore.2023.122772 DOI 1867020 Other
Divisions:	Schools > Nottingham Business School
Record created by:	Jeremy Silvester
Date Added:	07 Mar 2024 09:18
Last Modified:	07 Mar 2024 09:18
URI:	https://irep.ntu.ac.uk/id/eprint/51014

Actions (login required)

Edit View

Statistics

Views

Downloads