How sustainable banking fosters the SDG 10 in weak institutional environments
研究了可持续银行在法治薄弱的国家如何通过建立双向信任来减少收入不平等，基于46国1060家银行2010-2017年数据，发现可持续银行在弱法治环境下能有效降低收入不平等。
The role of the financial sector is central in reducing income inequality – the goal of SDG 10 – by facilitating economic opportunities. However, institutional weaknesses may also undermine this effect. We argue that sustainable banking generates bidirectional trust to overcome institutional weaknesses, particularly the weak rule of law. Empirical evidence from 46 countries aggregating data of 1060 banks over 2010–2017 shows that sustainable banking lessens income inequality in weak rule of law settings. The results are robust after including the effects of bank digitalisation. This study has important implications for sustainable banking expansion into weak institutional environments and demonstrates banks’ efforts in their commitment to reducing inequality.