LaBS research seminar: Does sustainable banking facilitate reducing the SDG-10 in weak rule of law setting? (Ashfaq Habib, University of Poonch Rawalakot)

On Thursday, February 22nd, LaBS welcomed Ashfaq Habib (University of Poonch Rawalakot), who presented his paper "Does sustainable banking facilitate reducing the SDG-10 in weak rule of law setting?"

Seminar video is available here.
Password:  exV0*nir

Abstract:
Facilitating economic opportunities is a critical function of the financial sector, and this contributes significantly towards the attainment of Sustainable Development Goals 10 (SDG-10), which aims to reduce income inequality. This research examines the role of sustainable banking practices in reducing income inequality and achieving SDG-10 under weak rule of law settings. We employed a panel cluster regression model to examine the data collected from 890 banks across 49 nations over a nine-year period (2014–2022). Specifically, we opted to cluster the observations based on industry and year to produce unbiased standard error. The findings reveal that sustainable banking practices are more effective in reducing income inequality, especially in settings with weak rule of law. They also contribute to combating money laundering, which is a significant barrier to achieving SDG-10. The study highlights the importance of transparent and responsible financial transactions in promoting investment opportunities that contribute to sustainable development. Moreover, we find that sustainable banking can accelerate the impact of Fintech in reducing income inequality in weak rule of law settings. The use of Fintech in the financial industry can improve transparency, accountability, and fairness, which are essential for progress towards achieving SDG-10. These findings have significant implications for the expansion of sustainable banking practices in regions with weak institutional frameworks.

The full text is available here.