Banking sector openness, a path to social responsibility? Evidence from Southern European banks

In the aftermath of the 2008 global financial crisis, European banking practices have come under increased scrutiny. Observers often perceive banking sector openness as a conduit for external shocks, intensifying debates around its role. Following this trend, this paper provides an original perspective by investigating the impact of such openness on banks' social respon-sibility. We focus primarily on Southern European banks, considered the most vulnerable in the European context. Our findings reveal a substantial influence of banking sector openness on the banks' social responsibility. Interestingly, we also uncover that this effect is moderated by banks' financial performance.