ADOPTION OF GREEN BANKING: AN ANALYSIS IN SOME SELECTED AREAS OF BANGLADESH

Abstract

Green banking is the new way of conducting banking business through encouraging eco-friendly practices and lowering the carbon footprint of banking operations. The present study was conducted to analyze the green banking activities and reasons for the adoption of green banking, examine the factors contributing to the adoption of green banking, assess the relationship between green banking and the factors affecting the adoption of green banking, and find out the problems faced by bank officials in adopting green banking. A total of six banks and 60 bank employees were selected randomly from Mymensingh and Sylhet districts in Bangladesh. Data were analyzed through the Likert scale and the Pearson Chi-square test. A multinomial logistic regression model and the Garrett ranking method were also used. The major findings showed that private banks were more concerned about green activities than public banks, and the most important reason for the adoption of green banking was that banks wanted to convert their activities from traditional to modern. Environmental benefits, stakeholder pressure, policy guidelines, economic components, and loan demand were significantly influenced by adopting green banking. This study found that the lack of training for bank officials and the inadequate knowledge of customers about green activities were two of the biggest problems for the adoption of green banking. For the improvement of green banking services, a training facility for bank officials needs to be established. Keywords: Green banking, Adoption, Problems, Bank officials, Bangladesh.