Green Banking and Islam: two sides of the same coin

Syed Asim Ali Bukhari (Graduate School of Business, Universiti Sains Malaysia, Penang, Malaysia)
Fathyah Hashim (Graduate School of Business, Universiti Sains Malaysia, Penang, Malaysia)
Azlan Bin Amran (Graduate School of Business, Universiti Sains Malaysia, Penang, Malaysia)
Kalim Hyder (Monetary Policy Department, State Bank of Pakistan, Karachi, Pakistan)

Journal of Islamic Marketing

ISSN: 1759-0833

Publication date: 18 July 2019



Currently, one of the most important dilemmas facing mankind is environmental degradation and natural resource shortage. The adoption of Green Banking practices has been identified as a solution to the growing environmental problems all over the world. However, an important issue being faced by both the conventional and Islamic banking industry is the creation of stakeholder engagement in Green Banking practices. The purpose of this paper is to propose the use of Islamic principles in developing an emotional attachment between Green Banking practices and the Muslim consumer market to facilitate Green Banking adoption.


Based on the theory of self-congruity, the authors have proposed a framework to analyze the congruity between Islamic principles and Green Banking. The argument is built on secondary data by identifying the Environmental, Social and Governance (ESG) dimensions of Green Banking and proving its congruence with teachings of the Holy Qur’an and Sunnah.


It is observed that the doctrine of Islam established for mankind 1,400 years ago consists of the same principles that are now being implemented in the shape of Green Banking. The dimensions of Green Banking are in line with Islamic teachings and, thus, can easily be adopted and marketed by banks, especially Islamic banks, targeting the Muslim consumers. The congruence of Green Banking with Islamic principles can play a major role in fostering the growth of this imperative ideology for the Green Muslim consumers. Islamic banks can market green products and services on the basis of religious congruity to the Muslim consumer market and create greater acceptability and loyalty.

Research limitations/implications

The proposed model has not been empirically tested.


Limited research exists in the area of Green Banking adoption, especially in Muslim countries. Up until now, academic research has not been conducted on the congruity between the principles of Islam and Green Banking dimensions. This paper attempts to add to the unsaturated research area of Green Banking adoption by Islamic banks and how Islamic banks can gain a competitive advantage by building on the congruity between Green Banking and Islam.



Bukhari, S.A.A., Hashim, F., Amran, A.B. and Hyder, K. (2019), "Green Banking and Islam: two sides of the same coin", Journal of Islamic Marketing, Vol. 11 No. 4, pp. 977-1000.



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