The increasing urgency of environmental concerns, alongside the global challenges posed by climate change and resource depletion, has underscored the need for a transition toward a circular economy (CE). The banking sector plays a pivotal role in this shift, not only by financing and supporting circular initiatives across industries, but also by adopting CE principles within its own operations to enhance accountability and build stakeholder trust. In this context, banks are expected to improve transparency by disclosing information about their CE practices. Despite this growing relevance, CE disclosure (CED) in the banking industry remains an underexplored area in academic research. Therefore, this study seeks to address this gap by investigating the impact of CED on banks’ market value. Adopting a signalling theory perspective, the analysis applies an Ordinary Least Squares (OLS) regression to a sample of 107 European listed banks, focusing on CE information disseminated through their official websites. The results reveal a positive and statistically significant relationship between CED and market value. These findings offer interesting theoretical insights and practical implications.