The impact of blue finance on banking sector performance: An application of spatial analysis

International trade occupies a decisive position within the growth and development dynamics of national economies. Sustaining competitiveness relies on multi-dimensional indicators such as cost advantage, quality standards, value-added production, and branding capacity. Recently, these indicators have been expanded to include the necessity of developing low-emission products and processes, in alignment with globally adopted transition policies toward a zero-carbon economy. In this context, emission reduction is not limited solely to the adoption of renewable energy in production and the use of recyclable inputs; it also necessitates a holistic evaluation of emission-reducing approaches within transportation and distribution processes. Within the logistics sector, maritime transport is widely preferred in global trade due to its relatively low fuel costs and high-volume/high-tonnage carrying capacity. However, factors such as the prolonged waiting periods of vessels in seas and oceans, the interaction of hull oxidation (rusting) with seawater in the absence of adequate maintenance, the operation of shipboard machinery on a fuel-oriented basis, and the continued use of fossil fuels exacerbate the environmental impact of maritime transport. This necessitates policy instruments for emission reduction and pollution prevention. Since sustainable practices can entail high costs, the financial dimension becomes prominent; in this framework, the 'blue finance' approach aims to fund projects directed at carbon reduction and the strengthening of sustainability in seas and oceans. The intermediary and guiding role of banks is of critical importance in supporting the development of blue firms and disseminating sustainable finance. This thesis examines the impact of blue finance on bank performance in European Union countries during the 2012–2024 period using the spatial panel data analysis method. The study aims to contribute to the literature by diverging from approaches that predominantly focus on the relationship between green finance and bank performance, instead evaluating the role of blue finance in bank performance while accounting for spatial interactions.