Banking Stability in the Context of the ESG Model at World Level

This study examines the integration of Environmental, Social, and Governance (ESG) factors intoglobal banking practices and their impact on financial stability, measured by the Bank to CapitalAsset Ratio. Through a comprehensive literature review and data analysis, the paper highlights thedual role of banks as catalysts for ESG investment and risk managers. It discusses the challenges andopportunities in transitioning to ESG-aligned business models, emphasizing the importance ofregulatory frameworks and risk management approaches. The findings suggest that ESG integrationenhances bank stability and competitiveness, contributing to sustainable economic development. The paper concludes with policy implications and recommendations for further integration of ESG factors into banking governance.