In the context of globalization and the demand for sustainable development, ESG (Environmental – Social – Governance) has become an important criterion in bank risk management. This study analyzes the impact of ESG on credit risk, financial stability, and profit volatility of 20 listed commercial banks in Vietnam during the period 2015–2024, using panel data and the System GMM method. The results show that ESG has a positive effect on long-term financial stability (Z-score), while in the short term, banks with high ESG scores tend to experience increased non-performing loans (NPL) and profit volatility (VOL), reflecting the early stage of ESG integration in Vietnam. The study also highlights the roles of bank size, bank age, and macroeconomic factors. The findings provide a scientific basis for banks and regulatory agencies in integrating ESG into risk management and enhancing financial sustainability
Download
Download XML