The influence of the business cycle on the financial health of sustainable banks in comparison to traditional banks

In this thesis the difference in financial health between sustainable and traditional banks is researched. We find significant differences between the financial health of sustainable banks and traditional banks over the business cycle. The financial health of the sustainable banks is not influenced by the business cycle. The fiancial health of the traditional banks is significantly influenced by the business cycle for the profitability and the solvency. A combined panel data analysis shows that the difference in financial health between sustainable and traditional banks is not caused by the business cycle.