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Banks play a crucial role in a country's development, and with the current global emphasis on sustainability, this paper evaluates the relationship between Environmental, Social, and Governance (ESG) practices and financial performance of banks. This study uses a systematic review of 40 research articles published from 2019 to 2025, utilizing the TCCM framework along with the Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR) protocol. The search terms used to screen the articles for inclusion were “esg”, “profitability”, “bank”, "financial performance ", “banking”. Result reveals that most of studies were based on shareholder theory, in order to further understand the FP variation, the study also discovered that a large number of publications recommended investigating the indirect influence or control variables in the ESG–FP association. Therefore, the findings highlight a need for additional research to investigate indirect links in order to better understand the dynamics of ESG and FP by evaluating potential moderators or mediators, especially bank risk-taking. The results may interest academic researchers, regulators and policymakers and would support stakeholders and decision-makers who wish to discover Relationship between ESG practices and financial performance in banks. This study contributes to previous literature by studying the relationship of ESG practices on the banks’ financial performance by examining the TCCM framework along with the Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR) protocol. Indeed, the originality of this research paper is justified by the scarcity of literature review using TCCM Framework and, to the best of the authors’ knowledge, constitutes one of the first attempts to examine this relationship.
"Banking on Sustainability: A Systematic Review Synthesizing the ESG-Financial Performance Relationship in Banking.", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2455-2631, Vol.10, Issue 12, page no.a449-a467, December-2025, Available :http://www.ijrti.org/papers/IJRTI2512056.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator