Bank Sustainability, Default Risk and Systemic Risk Nexus

Abstract

Banks facilitate the flow of funds between surplus and deficit spending economic units and thus play a clinical role in the amelioration of the society (Cull et al. , 2013). However, societal development is to be gauged in terms of sustainability and banks have to do their bit towards this end (Galaz et al. , 2018). Historically, the replication of sustainability aspects in banking business models has not been that encouraging.