Uman National University | today: 05/23/2026
| Author(s) | Melnyk К. М., , , | ||
|---|---|---|---|
| Category | Economics | ||
| year | 2026 | issue | Issue 108 part 2 |
| pages | 198-208 | index UDK | 336.71:005.35(477) | DOI | 10.32782/2415-8240-2026-108-2-198-208 (Link) |
| Abstract | The article examines the impact of environmental, social, and governance (ESG) factors on the financial stability of the banking system of Ukraine under conditions of global transformations, wartime challenges, and European integration processes. The economic essence of the ESG concept as a modern tool for ensuring sustainable development is revealed, and its importance for the functioning of the financial sector is substantiated. Theoretical approaches to the interpretation of ESG factors are generalized, and the specifics of their adaptation in banking activities are identified. The key channels through which ESG factors influence the financial stability of banks are analyzed, including credit, market, operational, liquidity, and reputational risks. It is determined that the integration of ESG criteria contributes to improving the quality of loan portfolios, reducing non-performing loans, enhancing corporate governance, and strengthening trust among investors and clients. An analysis of the dynamics of ESG implementation in the banking system of Ukraine during 2021–2025 is conducted, which reveals a gradual transition from a declarative to a systematic integration of sustainable development principles. It is substantiated that the social component of ESG demonstrates the most dynamic growth, while the environmental component requires further development. The main challenges of ESG banking development in Ukraine are identified, including an underdeveloped regulatory framework, lack of unified non-financial reporting standards, limited access to ESG data, and the impact of wartime risks. The study proposes directions for improving ESG integration in banking activities, particularly through harmonization with EU standards, expansion of green financing, and digitalization of ESG risk assessment processes. | ||
| Key words | ESG banking, financial stability of banks, sustainable development, banking system, risk management, green financing, regulatory policy | ||