The Effect of Green Banking Practices on Banks’ Environmental Performance and Green Financing: An Empirical Study

Green banking and profitability of banks in Nigeria: Opinions and attitudes

There is no doubt that global attention has shifted to environmental protection given the series of devastations that have occurred and the consequences of such devastations, now manifesting as global warming. People believe that the involvement of banks in this crusade will facilitate the realization of the goals of environmental protection. This study investigated respondents' perceptions of green banking and the profitability of banks in Nigeria to ascertain how full implementation of green banking will enhance the profitability of banks in Nigeria. The study employed a cross-sectional survey of respondents from First Bank and Access Bank employees in Nigeria. The study performed structural equation modelling to analyse the research data. The results show that green banking will have a significant positive influence on the profitability of banks in Nigeria and that goodwill will mediate the relationship between green banking and profitability by enhancing the image of banks committed to green banking and thus making them attractive. The study makes contributions to practice and to theory.

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.

Evaluation of end-of-life vehicle recycling system in India in responding to the sustainability paradigm: an explorative study

The growing number of end-of-life vehicles (ELVs) engenders a genuine concern for achieving sustainable development. Properly recycling ELV is paramount to checking pollution, reducing landfills, and conserving natural resources. The present study evaluates the sustainability of India's ELV recycling system from techno-socio-economic and environmental aspects as an instrumental step for assessing performance and progress. This investigation has performed the Strength-Weakness-Opportunity-Threat (SWOT) analysis to evaluate ELV recycling in the long-term viability and examine the critical factors and potential. This research makes practical recommendations for effectively encountering persistent challenges in the ELV recycling system based on Indian values. This research adopts an explorative and Integrated bottom-up mixed approach; it interfaces qualitative and quantitative data and secondary research. This study reveals that the social, economic, technological, and environmental aspects of the sustainability of India's ELV recycling system are comparatively limited. The SWOT analysis demonstrates that potential market size and resource recovery are more significant strengths, whereas lack of an appropriate framework and limited technology are major challenges in the recycling of ELVs in India. Sustainable development and economic viability have emerged as great opportunities, while informality and environmental impact have surfaced as primary potential threats to ELV recycling in India. This paper offers insights and yields critical real-world data that may assist in rational decision-making and developing and implementing any subsequent framework.

Research on the influence mechanism of green finance on the quality of green innovation of private enterprises: evidence from China

In the context of the "peak carbon dioxide emissions" and "carbon neutrality" strategic goals, how green finance can prompt private enterprises to achieve green upgrading has become an important issue to be solved. This paper empirically examines the effect mechanism of green credit policy on private enterprises' green innovation by using the difference-in-differences model based on the manually collected green patent data and matching financial data of Chinese listed private enterprises from 2009 to 2019. It is found that the implementation of green credit policy has a significant negative impact on the quality of green innovation of heavy-polluting private firms relative to non-heavy-polluting private firms, and this conclusion is still valid after replacing the explanatory variables, expanding the sample range, changing the model setting, and excluding the interference of other policies during the sample period. The results of the mechanism suggest that green credit policy negatively affects the quality of green innovation of heavy-polluting private firms by limiting their access to financing for loans and the capital market. Further study finds that commercial banks can reduce their non-performing loan ratio and increase their revenue growth rate by extending green credit funds to improve their business performance. It provides insights for better implementation of green credit policy and promotion of green economy development.

The effect of Fintech adoption on green finance and environmental performance of banking institutions during the COVID-19 pandemic: the role of green innovation

Despite the availability of substantial empirical evidence on the influence of green finance (GF) or green innovation (GI) on environmental performance (EP), only a few studies have attempted to examine the link between Fintech adoption (FA), GF, GI, and EP during the COVID-19 pandemic. Thus, by applying the structural equation modeling (SEM) approach to the data obtained from 302 banking staff in a developing economy (in this case, Bangladesh), this research work empirically examines the association between FA, GF, and EP, alongside the mediating role of GI. The empirical results indicated that FA significantly impacts GF, GI, and EP and that GF has a significant positive influence on GI and EP. Also, GI was observed to positively influence EP and partially mediate the relationship between FA, GF, and EP of banks. As one of the earliest studies to empirically investigate the relationships among these variables, these findings add to the existing scholarship on technological innovation, green finance, and environmental sustainability in the context of financial institutions in an emerging market during the pandemic. Moreover, the study demonstrates the significance of FA, GF, and GI in improving the EP of financial institutions and, ultimately, in ensuring the sustainable economic development of the country.

Role of Environmental Sustainability, Psychological and Managerial Supports for Determining Bankers' Green Banking Usage Behavior: An Integrated Framework

Purpose

Green banking, an ethical banking concept, concentrates on environmental protection and encourages social and environmental sustainability, perceived cognitive efforts, and subjective norms ensuring ecologically responsive banking services. Consequently, although there have been considerable green banking attempts in Bangladesh, it is yet unknown how environmental sustainability, perceived cognitive effort, and subjective norms affect usage behavior. The present research aims to uncover this gap, extending the Theory of Reasoned Action (TRA) to examine the determinants of the bankers' green banking usage behavior during COVID-19.

Methods

Data were collected from 366 bankers in Bangladesh using a purposive sampling technique and analyzed with structural equation modeling (SEM) using SMART PLS 3 software.

Findings

The study found management support (0.291, t-statistics = 1.978, p 0.000), environmental sustainability (β = 0.278, t-statistics = 2.752, p < 0.001), perceived cognitive efforts (β = 0.401, t-statistics = 3.549, p < 0.000), and subjective norms (β = 0.309, t-statistics = 4.352, p < 0.000) influence bankers' attitudes. Whereas environmental sustainability (β = 0.503, t-statistics = 3.726, p < 0.001), perceived cognitive efforts (β = 0.103, t-statistics = 2.020, p < 0.002), subjective norms (β = 0.281, t-statistics = 4.607, p < 0.000), and attitudes (= 0.602, t-statistics = 5.523, p 0.015) influence bankers' green banking usage behavior. Finally, the mediating role of management supports, environmental sustainability, cognitive efforts and subjective norms on green banking usage behavior through attitudes was significant.

Contribution/Conclusion

The study contributed to existing literature validating the proposed holistic framework applying TRA and three contemporary dimensions explaining bankers' behavior toward green banking practice. Finally, the implementers should focus on green banking practices as green banking is one of the key strategies to protect the environment, assure social justice, and create economic success.