Corporate Social Responsibility (CSR) has emerged as a critical factor in shaping consumer trust and addressing challenges in information flow within the banking sector. This study examines the role of CSR initiatives in mitigating information asymmetry, a persistent issue in banking, where consumers often lack complete knowledge about financial products and services. By fostering transparency, ethical practices, and community engagement, CSR can enhance trust and reduce uncertainty among stakeholders. The findings reveal that effective CSR initiatives significantly influence perceptions of trustworthiness, thereby improving information flow and bridging the gap between banks and their customers. The study underscores the importance of aligning CSR strategies with consumer expectations to achieve sustainable competitive advantages.

Corporate Social Responsibility (CSR), Information asymmetry, Banking sector

Adegbola, E.A. (2015), "Corporate social responsibility as a marketing strategy for enhanced performance in Nigerian banking system: A granger causality approach", Procedia Social and Behavioral Sciences, Vol. 164, pp. 141-149.

Andrikopoulos, A., Samitas, A. and Bekiaris, M. (2014), "Corporate social responsibility reporting in financial institutions: Evidence from Euronext", Research in International Business and Finance, Vol. 32, August, pp. 27-35.

Berk, J.H., Stanton, R. and Zechner, J. (2010), "Human capital, bankruptcy and capital structure", The Journal of Finance, Vol. 65, No. 3, pp. 891-926.

Chen, E. and Gavious, I. (2015),"Does CSR have different value implications for different shareholders?", Finance Research Letters, Vol. 14, pp. 29-35.

Dima, A. M. (2009), "Operational risk assessment tools for quality management in banking services", Amfiteatru Economic, Vol. XI, No. 26, pp. 364-372.

Duhé, S. (2009),"Good management, sound finances, and social responsibility: Two decades of U.S. corporate insider perspectives on reputation and the bottom line", Public relations Review, Vol. 35, No. 1, pp. 77-78

Easterbrook, F. (1984),"Two agency-cost explanations of dividends", The American Economic Review, Vol. 74, No. 4, pp. 650-659.

Falck, O. and Heblich, S. (2007), "Corporate social responsibility: Doing well by doing good", Business Horizons, Vol. 50, No. 3, pp. 247-254.