Sustainable Banking Business Model for Rural Banks in the Philippines

Abstract

While rural banks have business strategies to generate and exploit opportunities, they may need to be more sustainable. It suggests that their business model needs to consider sustainability's economic, social, and environmental facets. This study used the survey approach for descriptive-correlational research and eighty managers or key employees knowledgeable of the sustainability policies of particular rural banks made up the study sample. The researcher employed quantitative tools to analyze the survey's hypothesis. The associations between the variables of a research model were examined using multiple regression analysis. In addition to conducting structured surveys, the researcher examined secondary data on rural banks' financial performance on the Bangko Sentral ng Pilipinas website. Results revealed that sustainable and sound environmental banking practices and its capital and loan portfolios significantly influence bank financial performance. Thus, the current study suggested a sustainable banking model for Philippine rural banks.