Moderating impact of non-performing loans on the relationship between sustainable development goals and the financial performance of banks

Future Business Journal

Table 1 Variables

Variable	Type	Explanation
Return on asset (ROA)	Dependent	ROA is the measure of profitability in the banks from management perspective
Return on equity (ROE)	Dependent	ROE is the measure of profitability in the banks from shareholder’s perspective
ESE*NPL = IT_ESE	Independent	IT means interaction term
Economic indicators*NPL = IT_eco	Independent	IT_eco means interaction term for only economic indicators of sustainable development goals
Social Indicators*NPL = IT_soc	Independent	IT_soc means interaction term for only social indicators of sustainable development goals
Environmental Indicators*NPL = IT_env	Independent	IT_eco means interaction term for only environmental indicators of sustainable development goals
Capital ratio (CR)	Control	Capital Ratio is used as control variable
Leverage (LEV)	Control	Leverage is also used as control variable
Bank size (BS)	Control	Bank size is also used al control variable

IT is the interaction term that has been calculated by multiplying the ESE index and nonperforming loans. ESE index consists of economic, social and environmental indicators that gives insight in the adoption of sustainable development goals. These indicators are disclosed by the banks in their annual report or sustainability report