Abstract

The implementation of green banking is one of several factors that can have an impact on banking profitability. In addition to being a form of responsibility and participation of banks in protecting the environment, in fact the implementation of green banking has a fairly large influence on profitability. This study aims to understand the impact of green banking policies and daily operations on the profitability of state-owned banks in Indonesia in 2019-2023. Green banking policies are measured by 16 indicators set by Shaumya & Arulrajah (2016) and daily green banking operations are measured through the frequency of transactions via mobile banking, both of which are independent variables. Meanwhile, the dependent variable is profitability which is measured by the Return on Assets (ROA) ratio. To understand the influence between variables using panel data regression analysis. The results reveal that; 1) partially the impact of green banking policies on the profitability of state-owned banks is positive and insignificant; 2) partially the impact of daily green banking operations on the profitability of state-owned banks is positive and insignificant; 3) simultaneously the impact of green banking policies and daily operations on the profitability of state-owned banks is positive and significant

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