Green Banking Research Articles

Disclosure of Green Banking, Profitability and Company Size on Company Value in Banking in Indonesia

This study aims to determine the effect of green banking disclosures, profitability and firm size on firm value. The sample used was 11 samples with 55 observations using purposive sampling technique. The data used is secondary data, with the data collection method using content analysis. The analysis technique used is multiple linear regression analysis. The results of the analysis prove (1) disclosure of green banking, profitability and firm size has a positive and significant effect on firm value, (2) disclosure of green banking has a negative and significant effect on firm value, (3) profitability has a positive and significant effect on firm value, and (4) company size has a positive and insignificant effect on firm value

Environmental Policy Affecting the Development of Green Banking and Green Economy: A Case Study in Vietnam

Purpose: Research on factors affecting the development of green banking and green economy in Vietnam. The authors proposed policy implications that contribute to developing green banking and green economy in Vietnam based on the research results. Theoretical framework: Applied theoretical foundations and research model. In this part, the authors present the theoretical basis of green banking and green economy; as domestic and foreign studies related to green banking development, thereby building research models and developing research hypotheses. Method/design/approach: In research methods, the authors presented research methods such as qualitative research, preliminary quantitative research, and formal quantitative research. These methods are expressed through the research process and scale adjustment to test the research hypotheses. Besides, the authors continue to collect data for the official quantitative research method. This data is collected through a questionnaire survey of about 900 officers and employees of 15 commercial banks in five provinces and the city of Vietnam. Results and conclusion: The research results suggest some policy implications and recommendations to promote green banking development toward sustainable economic development in the long term. Many countries worldwide, including Vietnam, have chosen to develop green banking development and green economy. Research implications: Helping bank leaders assess the awareness and concern of bank staff about green banking and customers' understanding, needs, and desires for green services. Finally, banks design green banking products and services in line with the requirements of customers and the green economy.

Green Banking for Sustainable Development

The ever-increasing threat of global climate change, environmental pollution, and the destructive impact of human activities highlight the need for more detailed research into tools to increase a country’s environmental sustainability. In addition, it promotes the search for additional sources of funding for these activities. For developing countries, one of the main sources of environmentally sustainable development is international bank financing. Therefore, this study aims to analyze how international green banking affects the environmental sustainability of developing countries. For this purpose, the data series were compiled for the period of 2010 to 2020. The annual data for panel regression analysis are retrieved from the OECD and World Bank Open Data. The identified effects can be useful for government officials in terms of determining the benefits of using international green banking for gaining environmental sustainability.

Climate Finance: An Overview

Climate Finance: An Overview

Green Banking Development: A Case Study of Vietnam

Purpose: The objectives determine factors affecting green banking development in Vietnam. The authors proposed policy implications that contributed to the green banking development in Vietnam. Theoretical framework: For long-term sustainable economic development, many countries worldwide have chosen to develop a green economy, including the theory of green banking. Design/methodology/approach: The research method of the paper is a combination of qualitative and quantitative research methods. Qualitative research was conducted with a group discussion technique, checked the scales used, and consulted with banking managers on the research issue, thereby building the scales included in the research model and setting up and completing the questionnaire. Quantitative research was carried out from January to February 2023. Processing data by statistical methods, analyzing EFA and CFA, using linear structural model analysis (SEM) to test the fit of models and hypotheses with SPSS 20.0 software and Amos. Findings: The article showed that banking technology substantially impacts green banking development among eight factors. Research, Practical & Social implications: The study has inherited and supplemented the scale in the model and a new set of scales used to evaluate the development of green banks, systematized, increased, and developed more basic theoretical issues about banking green. Originality/value: The paper's originality and value help researchers, managers, and policymakers for Vietnamese commercial banks, in particular, and the banking industry, in general, to apply to contribute to the development of green banking and the green economy in the future.

Analysis of the Effects of Green Banking, Capital Adequacy Ratio on Profitability Growth with Institutional Ownership as a Moderating Variable

The goal of this study is to examine a number of variables that can affect profitability growth, such as institutional ownership as a moderating component, green banking, and capital sufficiency. The study is a quantitative one that gathers secondary data from 11 Indonesian public Sharia banks' financial reports for the years 2018 to 2022. Panel data regression analysis is the method employed, and Excel and Eviews 12 are used as test tools. The study's findings indicate that all free variables have a limited interdependence. Modernizations like institutional ownership and green banking have no detrimental effects on profitability growth. The accessibility of capital and the institutional ownership that modernizes it have a profoundly positive impact on profitability growth.

Green Banking in India: A Sustainability Perspective

Green Banking in India: A Sustainability Perspective

Impact of Green Banking on Environment: A Synergistic Paradigm Shift in Indian Banking Strategies

Impact of Green Banking on Environment: A Synergistic Paradigm Shift in Indian Banking Strategies

How Sophisticated is Green Banking in Poland and Romania? A Case Study of Bank Offers

The role of commercial banks in promoting sustainable development goals in Europe has gained ground recently. The momentum is also due to the Green Deal context. Their activity has shifted towards the achievement of such goals by getting involved in environmental projects or by raising awareness about sustainability. Their endeavors can also be directly reflected in the products and services they provide to the population and businesses. This is how commercial banks have taken up the role of educating the public towards sustainability and sustainable development goals. The aim of this paper is to investigate the green banking products and services of the largest five banks, by the number of clients, in Poland in Romania. A descriptive qualitative analysis is used to estimate the degree of sophistication of green banking products and services in the two countries.

The Effectiveness of Green Banking in Saudi Arabia

Background: Saudi Arabia is one of the countries in the world to launch ESG and Sustainable finance with the aim of not only contributing to global SDGs but also toward the achievement of the Kingdom’s Vision 2030. The need for sustainable financial practices has appeared as green finance and funding renewable energy projects as well as implementing sustainable practices in operations and services. This paper analyses the concept of green banking, its importance, and advantages and disadvantages to achieve sustainability for the financial sector in Saudi Arabia. Methods: The paper utilises legal frames and documents to conduct a legal analysis of green banking as a new concept in Saudi Arabia. The secondary data is also used to support the analysis, and the qualitative approach is employed to discuss the significance and features of green banking. Results and Conclusions: Saudi Arabia continues to face substantial obstacles in adopting green banking. These difficulties include the absence of explicit regulations and recommendations from the regulatory bodies and the high cost of implementing green banking practices in a market that is primarily dependent on oil-based sectors. It is, therefore, important the regulatory bodies shed more focus on green banking and must enact a regulatory framework to encourage financial institutions to support projects that uphold sustainability.

GREEN CENTRAL BANKING: A NEW ROLE FOR THE CENTRAL BANKS IN THE FINANCIAL SYSTEM

The financial sector has a key role to play in the transition to a more sustainable and low-carbon economy. Being major actors in the financial system, central banks can exert influence to encourage the adoption of green finance and reduce risks associated with climate change. A novel idea called "green central banking" aims to give central banks' operations, regulations, and goals more sustainability-related thought. This study explores the concept of "green central banking," which is just starting to gain traction, as well as potential central bank responsibilities and tasks in the field of sustainable finance. This study also emphasizes the difficulties and dangers of implementing green central banking, including the possible conflicts between financial stability and environmental goals. Also, the article provides a comparative examination of the methods used by central banks as it looks at the state of green central banking in various parts of the world. Ultimately, this study promotes central banks to take a proactive stance in the transition to a greener and more resilient financial system and believes that green central banking can be a critical tool for accomplishing sustainable development goals.

Does bank health level effect the profitability? Case study on core capital bank group 4 green banking pioneers

The research aims as well as the health conditions of banks that affect profitability. The population and sample in this study are the Core Capital Bank Group 4 Green Banking Pioneers. This study used a sample consisting of 10 Core Capital Bank Group 4 category banks listed on the Indonesia Stock Exchange, namely: CIMB Niaga, Danamon, Panin, Permata, OCBC NISP, BTPN, Maybank Indonesia, BTN, Mega, and BSI. This study uses secondary data obtained through annual bank financial reports for green banking indicators and sustainability reports for CSR during the Covid-19 pandemic from early 2020 to the end of 2021. The analytical method in this study uses multiple linear regression and simple linear regression. The results showed that the Capital Adequacy Ratio had a positive effect on profitability, BOPO had a negative effect on profitability and Non-Performing Loans had a negative effect on profitability.

Green finance continuance behavior: the role of satisfaction, social supports, environmental consciousness, green bank marketing initiatives and psychological reactance

PurposeThe study aims to examine the green finance customers' post-usage continuance behavior based on an extended social support theory (SST). Remarkably, this study explores five indirect predictors of green finance continuance behavior (GFCB) (i.e. environmental consciousness (EC), green bank marketing initiatives (GBMI), informational supports, emotional supports (EST) and psychological reactance) and a mediator (i.e. customer satisfaction).Design/methodology/approachIn this study data were collected from 362 respondents from Bangladesh using a purposive sampling method with a structured self-administrative questionnaire and analyzed by partial least square structural equation and modeling using SMART PLS 3.0 software.FindingsThe results depict that the five predictors, i.e. information supports (ß = 0.367, t-statistics = 2.463, p < 0.001), EST (ß = 0.206, t-statistics = 2.315, p < 0.000), EC (ß = 0.324, t-statistics = 3.484, p < 0.000), GBMI (ß = 0.288, t-statistics = 2.028, p < 0.000), psychological reactance (ß = 0.126, t-statistics = 0.969, p < 0.052) influence GFCB while satisfaction is predicted by four predictors except psychological reactance (ß = 0.126, t-statistics = 0.969, p < 0.052). In addition, customer satisfaction (ß = 0.638, t-statistics = 6.317, p < 0.005) also has an impact on continuance behavior. Besides, the study understood that four predictors indirectly influence GFCB through satisfaction except psychological reactance ((ß = 0.080, t-statistics = 964, z = 0.958p < 0.338). Finally, the coefficient of determinations (R2) indicates that the five predictors explained 65.3% of changes in satisfaction, whereas 72.8% of changes are described by the five predictors and customer satisfactions.Practical implicationsFinally, this study highlights the social and managerial implications for the implementers of the green finance industry. It is recommended to emphasize green finance practice as it plays a crucial role in promoting environmental protection, ensuring social equity and driving economic growth. The green banking service providers, industry analysts, green consumers and respective government authorities can generalize green finance activities as an essential aspect of sustainable development to equalize the economic growth with a view to protecting environmental collapse and promoting renewable energy, energy efficiency, sustainable agriculture and other environmentally friendly activities.Originality/valueThe study will enormously contribute to the existing literature validating the proposed holistic framework applying SST along with EC, GBMI and psychological reactance in green finance continuance behavior.

Pengaruh Sharia Compliance dan Islamic Corporate Governance terhadap Kinerja Keuangan Perbankan Syariah

The purpose of this study was to determine the effect of sharia compliance and Islamic corporate governance rate on financial performance in Islamic banks in Indonesia in 2017-2021 and the sample in this study is 6 banks with a 5 years research period so that the total sample used in this study amounted 30. The sample in this study was obtained by using purposive sampling method. The research method uses an associative approach quantitative and SmartPLS software is used for data processing. This study found that there was a significant effect between sharia compliance on green banking disclosure practices in Islamic banks in Indonesia and did not find any influence between Islamic corporate governance on financial performance in Islamic banks in Indonesia. Recommendations for further research are to using proxies or other independent variables that have a stronger influence on Islamic banking financial performance, Develop or increase Islamic corporate governance indicators, Extending the reporting period for research samples.

Policy Implications for Green Banking Development in Vietnam

Purpose: The article studies the factors affecting the development of green banking in Vietnam. Based on the research results, the authors proposed policy implications that contribute to the development of green banking in Vietnam. Theoretical framework: The article studies the factors affecting the development of green banking in Vietnam. Based on the research results, the authors proposed policy implications that contribute to the development of green banking in Vietnam. Design/methodology/approach: To survey the level of understanding of bank managers on issues related to green banking, green banking development, and the level of knowledge of officers and employees about green banking development areas, The authors used qualitative and quantitative methods. Quantitative research was carried out from January to February 2023. The authors used structural equation model analysis to test the fit of models with SPSS 20.0 and Amos. Findings: Quantitative and qualitative indicators have been introduced to measure the development of green banking and the economy. The factor of banking technology has the most substantial impact on the development of green banking and the economy. This is a new research paper finding in the context of the banking industry's digital transformation. Research, Practical &amp; Social implications: The study also shows that green banking development depends on financial capacity, supporting policies, legal framework, and state regulations. In addition, the study has included the factors of green banking development affecting the green economy from different approaches and analytical methods to evaluate. Originality/value: Developing green banks not only brings profits but also helps banks increase their prestige, reputation, and value. In addition, the development of green banking associated with the green economy is not only a form but will become the core value of the bank, recognized and appreciated in the trend of integration and sustainable development.

Systematic Review of Green Banking Adoption: Following PRISMA Protocols

Increased environmental concerns have prompted organizations, businesses and countries to act sustainably to accomplish sustainable development goals. Hence, research on Green Banking (GR-banking) has gained popularity as researchers have shown a significant interest in identifying the factors that promote the adoption of GR-banking. Considering Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA), this study reviews the articles related to GR-banking adoption or intention until April 2022. The underlying objective is to analyse the studies related to GR-banking adoption or intention, research methodologies and assess the theoretical frameworks used in GR-banking adoption or intention studies. The articles were extracted through a comprehensive key search strategy from the Scopus database and Google Scholar until April 2022. The survey identified only 51 articles that directly addressed GR-banking adoption or intention, indicating a significant knowledge deficit in this field. Empirical studies on GR-banking adoption are relatively higher in number than theoretical studies. Results of this study provide key details on both empirical and theoretical studies and highlight the areas for future studies. The study further highlights that the research on GR-banking adoption or intention is in its infancy, and limited two-dimensional studies have been conducted on GR-banking adoption or intention. Moreover, current studies have not investigated performance outcomes of GR-banking besides exploring a few theories. This study offers multiple insights and identifies important research areas that need to be explored in the future to enhance sustainability and related practices in the banking industry.

GREEN BANKING: AN ANALYSIS OF THE RETAIL BANKING CUSTOMER PERCEPTIONS

The growing prominence of the need for businesses to consider various stakeholders interests including the environmental aspects has correspondingly led to an interest in green banking. Green Banking is viewed as important for multiple factors including for the achievement of various targets such as the Sustainable Development Goals (SDGs). The views of various stakeholders of banks including the banking customers towards green banking are important for consideration and hence this study uses a descriptive research methodology that focuses on the aspect of green banking and retail banking customers in the urban cities of India. The various responses of the retail banking customers were collected through the use of a semi-structured questionnaire and were subsequently collated and analysed. It was found that the awareness towards green banking was less, but there was a favourable view towards the concept. However, there is an unclarity in their understanding of the resulting influence of green banking practices on the bank itself and less amenability to an increase in costs due to green banking practices. Subsequently, the various identified impediments were analysed with suggested measures to address them and the potential results.

Green banking practices, bank reputation, and environmental awareness: evidence from Islamic banks in a developing economy.

Fulfilling the international considerations of environment, societal, and governance challenges, the financial industry, especially banks, has initiated "Go Green" practices to help sustain the environment and enhance "banking" across the globe. Amidst the green and climate-friendly drives, there is scarce literature highlighting the banks' green practices, environmental awareness, and their effects on bank reputation, especially the reputation of Islamic banks. This study aims to investigate the green banking practices of Islamic banks in a developing Islamic country. Focusing on the greening ambitions of banks, this study argues that the reputation of Islamic banks can be better enhanced through adopting green banking initiatives that will beget better climatic outcomes in Muslim societies. Therefore, the study illumes green banking practices and their impact on the reputation of Islamic banks in Pakistan. Moreover, this study checks the moderation effect of employees' environmental awareness on banks' reputation. The study used deductive rationale and quantified the employees' data to unravel their go-green perceptions and bank green activities. In this regard, the 390 response data, collected through a survey from the employees of Islamic banks, were analyzed through Smart-PLS, using structural equation modeling technique. The study finds that banks' employees-related practices (ERPs), daily operations-related practices (DORPs), customers-related practices (CRPs), and banks' policy-related practices (PRPs) have a significant positive influence on bank reputation. The authors also find that there is a significant moderating impact of environmental awareness between the relationships of ERPs, DORPs, CRPs, PRPs, and bank reputation. The study might increase understating and enlighten regulators and bank management to sustainably transform their operations to green banking practices, particularly adding to the environmental sustainability in Pakistan.

Green Banking, Kesehatan Bank dan Profitabilitas dengan Corporate Social Responsibility sebagai Variabel Moderasi

The 2020 - 2021 pandemic has had an impact on banking activities. The aim of the study was to find out green banking practices carried out by the core capital bank group (KBMI) 3 during the pandemic, including CSR, as well as the health conditions of the banks. The study is based on the theory of Socially Responsible Investment and the concept of bank soundness. The study sample is KBMI 3 banks listed on the IDX. The operational variable is the dependent variable ROA as a measure of profitability. Meanwhile, the independent variables are CAR, BOPO, and NPL as bank health variables, 16 Green Banking indicators and 91 CSR indicators. The data analysis technique uses multiple and simple linear regression methods. The results show that the BOPO variable has a negative effect on bank profitability. Meanwhile, other variables have no effect. Thus, the study results provide findings that during a pandemic, KBMI 3 banks focused on maintaining cost efficiency, one measure of bank health. The research results are in line with the concept of bank soundness. The research contribution is that in the conditions of Covid-19, the KBMI 3 bank supports sustainability but maintains more cost efficiency.&#x0D; Keywords: Green Banking, Corporate Social Responsibility, Specific Condition, Cost Efficiency.

Urgensi Penerapan Konsep Green Banking di Indonesia

Era globalization, environmental management and protection become important matters. Environmental issues nowadays have become not only local or trans-local issues but also regional, national, transnational, and global issues. On that matter, banks in Indonesia transform their business activities by implementing the green banking concept, in which national banks nowadays consider environmental management and protection aspects in their operational activities. However, the absence of statutory regulations in Indonesia which explicitly stipulate obligations for a bank to include provisions for environmental management and protection requires legal renewal in the application of the green banking concept to banking management in Indonesia. This research aims to review the definition and history of green banking and the urgency of the green banking concept implementation in Indonesia. This research is normative legal research in which using a statute approach. The legal materials used in this research are derived from primary and secondary legal materials. The legal material collection technique used in this research is a library research technique. The data in which sourced from legal materials in this study were analyzed using a qualitative approach.