Concept Of Green Banking Research Articles

Agricultural sector financing to realize green banking in Indonesia

Indonesia is known as an agricultural country for its abundant natural wealth. It has a very strategic geographical position, located in the tropics and having high rainfall. The banking sector has a vital role in economic development. Even though bank business activities do not have a direct impact on the environment, banks can protect the environment through credit financing management. The problem observed in this study is the role of agricultural credit financing in realizing green banking in Indonesia. This research uses a normative juridical method supported by a literature review. The results show that the agricultural sector is directly in contact with society and has the potential to damage the environment. The protection from the banking sector is greatly needed to conserve the environment. Any form of potential environmental damage can be prevented through a special clause in the credit agreement. In conclusion, banks have a significant contribution to realizing the environmental sustainability of agricultural activities in Indonesia. At present, green banking in credit agreements has not included a clause regarding environmental management. This research suggests the banks to include a clause on environmental protection in credit agreements in accordance with the concept of green banking.

GREEN INITIATIVES OF SBI: A CUSTOMER-CENTRIC STUDY

Green banking is the topic of discussion in the current era of global warming and climate change. India banking system has taken the concept of green banking into consideration and the circular issued by RBI in 2013 regarding green banking is the proof of its relevance. SBI is a bank in the public sector which has taken green banking into next level. The initiatives taken by the bank in implementing green banking is remarkable and this study intends to conduct an in-depth study about the green products offered by the bank. The article also analyses the concept of green banking from the side of customers. The awareness level of customers regarding various green product is looked into. An in-depth analysis of the benefits and satisfaction of green banking is also done from the perspective of customers. KEYWORDS: Green Banking, Sustainable Banking, Green Products, Paperless Banking

Adoption of green banking practices and environmental performance in Pakistan: a demonstration of structural equation modelling

Banking industries are blamed to be among the major factors that affect global climate change both directly and indirectly. The green banking concept has emerged in the last decade to trigger the adverse impact the banks put on a healthy environment. However, research regarding the adoption of green banking practices in developing economies, especially in Pakistan, is scarce. While environment friendly businesses are promoted by the government including in the banking industry. Green banking practices not only adopted by the business operations but also to practice it at policy-making level. It also encourages green project financing to ascertain environmental efficiency. Based on SRI theory, this study investigates the relationship between green banking practices and their direct and indirect impact on environmental performance. Structural equation modelling approach has been adopted to test the relationships of variables of the study. The impact of the green practices has been recognized much greater and influential in promoting green environment regarding policy-making and investments in green projects. Results reveal that there is a significant influence of policy, daily operations, and investments on the adoption of green banking practices. Interested parties can adopt the study proposed framework to access and identify the factors which can promote justified level of green banking practices in the country. Moreover, this study may help in providing rich updated literature in green banking to speed up future research in the same area.

ЗЕЛЕНИЙ БАНКІНГ В УМОВАХ ДІДЖИТАЛІЗАЦІЇ

The article considers environmentally responsible green banking activity as a direction of sustainable development of the banking sector in the context of digitalization of the Ukrainian economy. The article reveals the content of the concept of green banking and sustainable development, defines the features of implementing sustainable development strategies in banking institutions. In particular, the main Green Environmental Services implemented by commercial banks in Ukraine are considered. Four stages on the way to the sustainability of financial activities of banking institutions have been identified. Four stages on the way to ensuring the sustainability of financial activities of banking institutions have been identified. The first stage is the protective phase of basic environmental risk management, when broader sustainability issues are ignored. The second is the reactive phase, where more systematic management of environmental and social risk is carried out. The third more active or offensive phase, in which strategic environmental and social risk management is carried out and even. The Ultimate banking sustainability phase, where the triple approach (people, planet and prosperity) is integrated into the bank’s core business strategy and is no longer limited to risk avoidance, but is now seen as a potential part of every type of financial risk management and decisionmaking processes. To determine the strengths and weaknesses, opportunities and threats, a SWOT analysis of the introduction of green banking in banking institutions of Ukraine in the context of digitalization was conducted. Three main components of the green banking strategy in Ukrainian banking institutions have been identified. These include: managing environmental risks, creating a so-called Green Office, developing and promoting environmentally friendly services and products through digitalization of the economy. A detailed review of Green Environmental Services, which can be implementation for the transition to environmental friendliness in the banking sector. The role of the banking sector in the development of green banking in the context of digitalization is determined. It is proved that green banking in this financial world is a new development and an active way to achieve sustainability in the future. Banks in Ukraine are quite far behind their counterparts in the developed economy. But banks that try to clarify the green color and use green financing tools in their activities have chances.

Green Banking Concepts in Qur'an Review

This study aims to describe the concept of Green Banking in the review of the Qur'an through the approach of Ijmali and Maudhu's interpretation method as its analysis knife. Content analysis is carried out on the verses that are specifically chosen on the basis of their association with the term fasad in the category of environmental damage namely Surah Al-Baqarah [2]: 205 and Surah Ar-Rum [30]: 41. This is because the beginning of the concept of green banking emerged due to environmental damage ,. The research findings revealed from the two verses that it was found that the meaning of damage meant in essence was natural damage (both physical and non-physical) due to anthropogenic factors. Islamic banking in the provision of financing must prioritize projects that are pro-environment and pay attention to aspects of sustainability, both economic, socio-cultural environment or known as Triple P (People, Planet and Profit) with the principles of fairness, balance, benefit, economical and avoid the tyranny.

Factors Affecting Bankers’ Behavioral Intention to Adopt Green Banking: An Empirical Analysis of Banks in Pakistan

The global temperature has reached its highest level since the start of the industrial revolution, which is the major cause of global warming. Global warming has become one of the gravest problem now a days as it has considerable influences over markets, societies and economies. For sustainable environment management, remarkable efforts are carried out across the world and every institution is playing its role towards minimizing its impact on the environment. From financial institutions, banking sector is playing an important role in this regard. Banking sector has introduced a concept of Green Banking (GB). State Bank of Pakistan (SBP) has recently issued guidelines regarding the adoption of green banking. This study attempts to identify the factors which affect bankers’ intension to adopt green banking. This study would prove to be helpful in identifying the most influencing factors towards adoption of green banking practices and in developing policies towards its adoption in Pakistan. Structured questionnaire based on a 7 point Likert scale as used for data collection from a sample of 300 respondents. Regression analysis was used to check the association among the variables. The result of study shows that all independent variables of study have shown significant association with dependent variable. Which means to some extent every independent factor is playing role in affecting bankers’ behavioral intension to adopt green banking. Result shows that perceived usefulness and perceived ease of use contribute more in predicting the Attitude toward use, which along with effort expectancy and performance expectancy are major contributing factors towards behavioral intention to adopt green banking practices.

Održivi ekonomski razvoj kroz zeleno inovativno bankarstvo i finansiranje

The essence of the paper is a new concept of finance, which is synchronized with the environmental processes of the planet development - green finance. Green finance is positioned between the financial industry, sustainable economic development, and environmental protection. Banks can play a relevant role in promoting environmental sustainability by financing environmentally and socially responsible projects. To fulfill this role, the banking sector in certain countries has adopted the concept of Green Banking which promotes environmentally responsible financing and sustainable internal processes. The paper aims to study the role of banks in sustainable economic development through green banking activities. Building on the theoretical concept of green finance and green banking activities, it is ultimately suggested that developing green banking products are is a proactive idea that might enable eco-friendly business practices for present and future generations.

An Investigation into Role of Leadership Commitment on Implementation of Green Banking: Moderating Influence of Responsible Leadership Characteristics

Purpose: The purpose of this study is to investigate the influence of leadership commitment on implementation of green banking in Pakistan through the lens of moderating role of responsible leadership. The concept of green banking in modern banking industry is associated with provision of environment friendly banking services through environment friendly banking operations and infrastructure. It can be referred to sustainable lending and depository product and services provide by banks through sustainable banking operations and infrastructure.
 Design/Methodology/Approach- An exploratory qualitative research design is used to postulate the theoretical model relating leadership role with implementation of green banking practices in Pakistan.
 Limitations/Implications- Further studies are needed to empirically examine the postulated relationships signified by proposed model of the study.
 Originality/ Value- The proposed model and relationship will significantly contribute to better understanding of role of banks leadership towards transformation of conventional banking into sustainable banking practices and products.

Triggering Green Transformation of the Private Sector Through Central Bank-led Initiatives: The Role of Bangladesh Bank in Mainstreaming Green Finance in Bangladesh

A number of guidelines and circulars issued by Bangladesh Bank directing the banks and financial institutions under its jurisdiction to factor in environmental concerns while making financial and in-house operational decisions have created tremendous awareness about the concept of green banking in the banking community of Bangladesh. Actual disbursement of green finance, which till date remains undefined in the lexicon of the central bank, however, has been inadequate. 93% of the 2,370,392.45 million taka disbursed as green finance between 2013 and 2017 has been loaned under the category of Indirect Green Finance; which essentially is amount loaned to any project having an Effluent Treatment Plant (ETP) or similar system. How much of this amount loaned as Indirect Green Finance is actually used to operate ETPs, a key priority for curbing water pollution in Bangladesh, is not traced. This paper offers a strategy for aiding Bangladesh Bank shift from a supply-driven approach of disbursing green finance to a demand-driven one. Towards this end, a new functional conceptualisation of green finance is suggested. The functional conceptualisation that we offer in this paper includes: i. a definition that guides practical application, ii. a new way of categorisation that creates room for acknowledging the fact that demand for green finance by different segments of the private sector (private businesses and household level consumers) in their different roles has different roots, and iii. identification of the drivers motivating expenditure on green solutions by private businesses and consumers and thus creating private sector’s demand for green funds.

The Identification of Green Banking Concept and Bank Liability (A Study of Act Number 10 of 1998 with Extensive Interpretation and Progressive Legal Approach)

The purposes of this research are to analyze the identification of Green Banking concept in the Act Number 10 of 1998 with extensive interpretation and progressive legal approach and to analyze how banks should be held liable for based on applicable law in view of the extensive interpretation and progressive legal approach. This research is a normative legal research that has analyzed Green Banking concept using Act Number 10 of 1998 concerning Banking, Bank Indonesia Regulation Number 14/15/PBI/2012 concerning Asset Quality of Commercial Banks, Act Number 32 of 2009 concerning Environmental Protection and Management and the Financial Services Authority Regulation Number 51/POJK.03/2017 concerning the Application of Sustainable Finance for Financial Services Institutions, Issuer Companies and Public Companies, and then presented as prescriptive research. The result of this study is that banks are reluctant to further examine the AMDAL of financed projects and do not oversee such projects until the termination of the contract. Extensive interpretation and progressive legal approach can be used to provide bank a deep insight regarding the concept of green banking contained in the banking law and the extent to which banks (creditors) are subject to the terms of the lender liability.

Implementasi Aksioma Etik Praktik Financing pada Lembaga Keuangan Mikro Syariah sebagai Upaya Mewujudkan Sustainable and Resposible Investment di Indonesia

This research is motivated by the fact that the new direction of the concept of development in the world has accepted the concept of Sustainability Development Goals. This implies that all stakeholders involved in national development are required to be able to realize the objectives as contained in the concept, including the Islamic finance business. This business should have a future view. This orientation will encourage Islamic finance to continue to conduct research and development to find various types of needs and technology and other standards that are in line with future demands. It is interesting if the study relates to the implementation of axioms of ethics in realizing the Sustainability Development Goals concept in the Islamic finance business in Indonesia for further research. Through an empirical study with a qualitative approach, this study shows that conceptually, the Islamic microfinance institution agrees with the concept of green banking as a form of sharia compliance. While implementation, Islamic microfinance institutions in Indonesia have not significantly followed the components of green banking.

Green Banking for Environmental Sustainability-Present Status and Future Agenda: Experience from Bangladesh

The concept of green banking is becoming a buzzword in the financial and banking sector and in the common people of the world over the last few decades. This paper tries to highlight the present status of green banking practice, progress, and different green initiatives taken by the Bangladeshi banks to keep the environmental sustainability. Through content analysis of the annual reports of Bangladesh Bank (the Central Bank of Bangladesh), quarterly review report of green banking activities and annual review report of CSR activities, the study discovers that Bangladeshi banks are doing well in practicing sustainable baking with maintaining the specific guidelines of Bangladesh Bank. Though the green banking initiatives were introduced by Bangladesh bank in 2011 but within a short period, it’s achievement is mentionable. As the guardian of the banking companies, Bangladesh Bank provides a standardized guideline, and all the banks practice green banking activities according to its instruction along with their own policies. Mostly the banks insert their good news about green activities, investments, and achievements in their annual reports and also report to the Bangladesh Bank. This type of green practices aids the banking institutions to attract the regulator, customers, public and also get the greater legitimacy. As a developing country with lower technological advancement and minimum social and environmental awareness of the general people, Bangladeshi banking companies face many challenges to be green and environment-friendly. Finally, the study concludes with mentioning some suggestions to make the practices of green banking effective through gathering experiences from different research in advanced countries.

Measuring Green Banking Practices: Evidence from Sri Lanka

In recent years, both academics and practitioners are paying more attention to green banking concept due to its significant influence on environment management in banking context. In Sri Lanka, banks are launching green banking initiatives in recent years. Apparently, there are lacunas in empirical studies undertaken in Sri Lankan context regarding green banking practices and how to measure the level of intensity of green banking. As the green banking has become an emerging concept, both researchers and practitioners have called for a set of reliable and valid instrument for measuring green banking concept. The objectives of this paper are to explore the green banking practices in Sri Lanka and to develop an instrument to measure the green banking concept/practices. In order to achieve the first objective, data were collected from the secondary sources, mainly from the last three years annual reports of the selected banks in Sri Lanka and content analysis was applied. Regarding second objective, an instrument was developed to measure green banking practices and tested among the 155 bank staff of selected bank branches. In connection with the first objective, this study has identified and explored 98 green banking practices among the four private sector Commercial Banks in Sri Lanka. Regarding the second objective, a 16 items instrument with four key dimensions were developed to measure green banking. It is a reliable and valid instrument in measuring green banking practices from the perspective of Sri Lanka.

Changing Scenario of Banking: An Empirical Study on Customers’ Perspective on Green Banking

Indian Government is proposing quiet stringent policies for tackling the climate changes and financial service sector is also covered in the regime. The massive amount of carbon emissions and pollutants are fatal for the human kind and countries are making effort to create a carbon free economy. To foster environmental friendly products and services, one of the buzzword in banking industry is Green Banking. This paper is a niche attempt to unveil the awareness of green banking initiatives, frequency of usage of green services and factor affecting purchase of green services among customers of selected public and private sector banks in Punjab. The findings revealed a high level of awareness about green banking concept and the most widely used green product to be debit and credit cards. The results highlighted that irrespective of the education level of customer, there is no difference in usage of green banking services. Application of factor analysis unveiled three main factor affecting purchase of green services i.e online transactions, safe and secure transactions and environmental benefits.

A Customer’s Perspective of Green Banking: A Case Study of Commercial Banks in Mauritius

The objective of this research is to gauge the level of customers’ awareness on Green Banking products and services by commercial banks in Mauritius. Additionally, this research investigates the opinion of customers as regards to Green Banking concept and evaluates the influence of the Green Banking initiatives adopted internationally on Mauritian customers. The primary data was collected through a sample of 200 questionnaires from customers and using SPSS software to generate the descriptive results. From the mean analysis obtained for influence of Green Banking products and services on bank customers, it can be noticed that advertising for e-statements, internet banking, and mobile banking amongst others was not influenced greatly by respondents. However, the majority of the respondents rated positively to the efficiency of green projects/CSR that is implemented by green banks in Mauritius. It can also be noted that most of the respondents make use of e-statements with a mean score of 3.53 followed by the use of internet banking and mobile banking with higher mean scores.

Green Banking and Reporting of Bangladeshi Commercial Banks: An Observation Under Global Reporting Initiative (GRI)

The paper examines the issues of green banking and reporting by commercial banks in Bangladesh under consideration of Global Reporting Initiative (GRI). The study is based on GRI 4 guidelines and we investigated bank’s reporting on green issues broadly in the aspect of environment only. The green banking concept is new in our banking sector and presently banks are following the guidelines of Bangladesh Bank (BB). This is an analytical research where ten commercial banks have been selected randomly. During the study period, data was collected from the secondary data sources, mainly from the annual report of 2010 to 2014. The result of the study showed that green banking and reporting are increased in the last five years, but not enough in the line of GRI 4 prescriptions. The analysis revealed that only a few banks maintained the guidelines of GRI 4 in preparing green banking and sustainable reporting. Most of the commercial banks in Bangladesh are followed traditional reporting along with Bangladesh Bank green banking guidelines in the absence of a standardized reporting standard. The analysis resulted that 100 percent (100%) banks disclosed information regarding environment. Furthermore, the analytical research found that according to GRI 4 environmental aspect majority banks provides information mostly of energy, biodiversity, emissions, effluents & waste, product & services, expenditure & investment. Moreover, the report also pointed that the policy makers of commercial banks are very concerned with fortifying sustainable development. The study concluded that for acquiring sustainable development Bangladeshi banking sector should follow GRI 4 principles and standard. As a result, GRI 4 guidelines should be mandatory in our banking sector for reporting green performance of commercial banks.

Green Banking for Environmental Management: A Paradigm Shift

The present era of industrialization and globalization has added a lot of comfort and luxury to human life but has also lead to an alarming situation of huge environmental degradation incorporated with all the involved activities. Today, the entire sector in the world economy is facing huge challenge to deal with the environmental problems and their related impacts in their day to day businesses. Not only the business firms have realized the importance of the environment but more than that an immense awareness is seen among the consumers and general public for the same. Due to all these reasons the business organizations have started modifying their activities and strategies so as to ensure protection to our natural resources and environment. In this context the financial sector and especially the banks can play an important role in promoting environmental sustainability. Sustainability is one of the most important factors driving the strategy making process of the business fraternity. Though we have realized very late that any development needs to be sustainable and equitable but the positivity lies in the fact that currently there has been an increasing concern for sustainable development among all the sectors in the economy including the financial sector. In financial sector, the various services that have adopted green business are banks, stock brokerage companies, credit card companies and also the companies of consumer finance. The concern for environmental sustainability has given mass recognition to the concept of corporate social responsibility. The potential benefits of the concept has gained the interest of the regulatory authorities, society, NGOs, employees, customers as well as the international bodies to the issue. In this regard, this concern for environmental sustainability by the banks has given rise to concept of Green Banking. In an emerging economy like India, environmental management needs to be the key focus area of the business fraternity and especially the banking industry being the major intermediary. This would help the firms in the emerging economies utilize their limited resources in an optimum way without harming the natural environment and face the global challenge of sustainability in successful manner. In the present paper green banking and sustainability has been discussed in detail. The paper also highlights on the stages, initiatives, benefits and future of green banking in Indian context. Some case studies in Indian context are also being discussed here in order to understand the importance of green banking in the present times. The paper also discusses about the various organizations and laws and guidelines for environmental conservation and sustainability and Green Banking.

Green Banking in Bangladesh: A Commitment towards the Global Initiatives

Banks usually provide dedicated public services for profits. It is believed that profit should not be earned at the expense of the world's most pressing environmental problems. Thus the concept of green banking is evolved in response to the global initiative to save environment. It is a kind of welfare banking for the society at large, it responses to be green in daily operations and financing of nature conservation projects. The present paper aims to highlight the green banking road map in Bangladesh and the status of its implementation. Further, an attempt has been made to explore activities of commercial banks in comparison with global green banking initiatives. The study utilized secondary data available from related websites, published reports and articles. The study concluded that Bangladesh is far behind their counterparts from the developed countries. But the general picture presents a transition to green banking in a consistent manner for most banks. By taking care of its infrastructure development and accelerating its existing green movements, banks can ensure sustainability for itself and greener world for communities. DOI: http://dx.doi.org/10.3329/jbt.v8i1-2.18284 Journal of Business and Technology (Dhaka) Vol.8(1-2) 2013; 17-40

“Green Banking practices in Bangladesh”

This contribution basically focused the green baking practices in Bangladesh. This study is mainly based on secondary data discussing about the planning of the green strategic and implementation, the house activities, the activities of the mobile banking, the online banking activites, green financing, and some instructions for green banking practices. Green Banking is a modern concept of the banking business through considering the corporate social responsibility (CSR) as well as environmental issue. Nowadays, it is the most acceptable and popular practices of the green banking by banks because leads to competition of globally. On an average, bank is allocated Tk.2 billion for green banking in 2012. The concept of green Banking is relatively new in Bangladesh and yet to get momentum, but in the developing countries it is passing through a mature stage. The study concludes that green banking practices in Bangladesh is not satisfactory at all

Profitability in banks of India: an impact study of implementation of green banking

Green banking has been an integral part of the banking system in the developed and the developing economies of the world. Much research has been carried out on the concept of green banking and the possible benefits of its implementation. This study empirically tests the relationship between the implementation of green banking along with two other variables, net income and expenses, and the profitability in India using a fast data panel regression. The result of the study shows significant relationships between net income and expenses with profitability, whereas no significant relationship between the implementation of green banking and profitability was proven.