Green Banking in Pakistan: A Qualitative Study

Abstract

In the face of escalating global warming, the call for transformative action becomes increasingly urgent. As industries and consumers grapple with the imperative of environmental stewardship, the banking sector takes centre stage in the journey towards a sustainable future. Green Banking is a ground-breaking shift aimed at harmonizing financial practices with ecological imperatives. This study delves into the evolving landscape of Green Banking within Pakistan, investigating its impact on customer engagement and institutional viability. Through qualitative research methods, interviews with key stakeholders from leading Pakistani banks unveil a nuanced interplay of challenges and opportunities. While initial reservations and differing viewpoints persist among stakeholders, a growing consensus emerges regarding the inherent benefits of Green Banking. Drawing upon theoretical frameworks including theory of planned behaviour, ecological consumerism, innovation diffusion theory, and prospect theory, our analysis highlights the increasing allure of Green Banking initiatives for Pakistani banks. Despite enduring obstacles, our findings underscore the necessity for Pakistani banks to embrace and advocate Green Banking, not only as a moral obligation but also as a strategic imperative for maintaining market relevance and sustainability.