Controversies Surrounding Anticompetition and Anti-corruption Policies in Europe’s Banking Sector: Assessing ESG Aspects Using the Entropy Weight TOPSIS Model

The primary aim of this research is to examine the influence of ESG scandals on unethical behavior within the European banking sector. When investigating potential misconduct inside a financial institution, specialists often concentrate on scrutinizing the financial aspects. Nevertheless, this research has significance as it acknowledges that the dispute around anticompetition behaviors is a crucial factor that might influence the occurrence of fraud and bribery in corruption cases. From 2018 to 2022, a comprehensive evaluation was conducted on 344 European financial institutions using the entropy-weighted TOPSIS approach. The research indicates that the primary factors that have a major influence on anticompetitive behavior in the sector are environmental considerations and equitable policy competition. The results also indicate that financial institutions in Scandinavia have a pronounced inclination toward engaging in anticompetitive conduct, suggesting that the Nordic banking industry may be subject to scrutiny for possible misconduct. Furthermore, it is crucial to emphasize that the Romanian financial sector distinguishes itself by its strict adherence to the ethical business norms of the nation. The study’s results may be used by governments and the financial sector to advance an industry that is characterized by equity and devoid of any misconduct.