Search results

This study aims to investigate the relationship between banks’ corporate social responsibility (CSR) mechanisms at the governance level and their likelihood of pursuing green product strategies. It also examines how CSR characteristics and green product strategies have evolved across regions and time.

Using a sample of listed banks from different economic areas over the period 2010–2019, the authors examine how CSR mechanisms at the governance level and green product strategies, which they categorize through principal component analysis, have changed over time and across regions. The authors then conducted panel regression to identify which CSR characteristics affect the likelihood that banks implement green product strategies.

Results show that CSR mechanisms related to bank transparency and commitment to the community, such as sustainability reporting and United Nations Global Compact adherence, are substantive in affecting the likelihood of banks pursuing green product strategies. In contrast, mechanisms related to internal organization, such as the presence of a CSR Committee and an environmental management team, tend to play more a symbolic role. Findings also support a reconsideration of environmental, social and governance-related compensation schemes, which appear to decrease the likelihood that banks engage in some forms of green financing. The likelihood of banks pursuing green product strategies varies across regions and has increased after the Paris Agreement.

The findings are useful in guiding regulators, supervisory authorities and policymakers in defining policies that can create conditions for banks to develop green products and, hence, encourage the sustainability behaviors of their clients. Empirical evidence reveals that some corporate governance mechanisms and green product strategies correlate positively, institutional factors matter and public policies can play a role in strengthening such a correlation. However, results are limited to specific geographical areas and listed banks.

This study contributes to the institutional literature by showing that some corporate governance mechanisms are substantive in increasing the likelihood of banks pursuing green product strategies, while others are more symbolic. It also extends the literature by analyzing how banks belonging to different geographical areas have responded, over time, to sustainability objectives.

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.

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.

Environmental degradation has been identified as one of the major impediments for development in Bangladesh. The World Health Organization has ranked Bangladesh fourth among the most polluted countries in the world. Faced with this challenge, the Government of Bangladesh introduced the Green Financing Policy and encouraged banks to participate in offering green financing as part of the efforts to promote environment-friendly economic activities for sustainable economic development. This study aims to examine the financial performance of selected commercial banks that offered green financing in Bangladesh in the period from 2012 to 2014.

In achieving this objective, the paper has divided the various sections of green banking policy under Maqasid Shariah framework of Imam Al-Ghazali, which is preserving faith, life, intellect, posterity and wealth. After that, green performance is compared between five conventional banks and five Islamic banks, according to the secondary data gathered from the annual reports and sustainability reports, as well as verified based on interviews. Finally, based on quantitative and qualitative thematic analysis approach, it is identified which banks meet most of the Shariah objectives along with performing sustainably.

The study finds that none of the banks fully meet the green/sustainable policy requirements; however, the Islamic banks are ahead in preserving faith, intellect and wealth circulation.

This research is mostly based on secondary data; banks’ non-disclosure of green data was an impediment to run in-depth and fair comparisons. However, to check the reliability and validity of secondary data, two heads of sustainable banking department from conventional bank and two from Islamic bank have been interviewed.

Based on the findings, several recommendations are made on ways to expedite green financing, which can ultimately enhance contribution of Islamic banks toward the sustainable economic growth of the country while fulfilling Maqasid Shariah.

Because the green banking policy aim is very much in line with Maqasid Shariah which is the aim of Islamic banks, Islamic banks can presumably contribute more to the sustainable economic growth of the country by aligning their entire operations with green policies.

To the best of the authors’ knowledge, this study is perhaps the earliest initiative to compare Islamic and conventional banks’ green performances in Bangladesh.

Due to the increased pollution and global warming, the banking sector is also implementing green practices in their operations to improve business ethics. However, there are few studies that have looked at how green practices affect performance outcomes. Considering this, the study aims to examine the impact of green banking adoption practices (GRBP) on consumer-related performance outcomes (i.e. consumer green satisfaction, consumer green perceived quality, consumer green trust, environmental friendliness and continuing relations with bank). The study used resource-based view theory and triple bottom line in connecting GBRP and consumer-related performance outcomes.

The data was gathered via a Likert scale questionnaire from banking personnel and consumers using a non-probability purposive sampling technique. The data of GRBP was collected from the banking employees, whereas the data for consumer-related performance outcomes were gathered from the banking consumers, and “Partial least square-structural equation modeling” (PLS-SEM) was used to examine research hypotheses.

The results of PLS-SEM reveal that GRBP positively affects consumer green trust, green perceived quality and green satisfaction. However, GRBP does not have any impact on environmental friendliness. The results further reveal that GRBP largely affects consumer green trust followed by green perceived quality and green satisfaction, respectively. Moreover, consumer green perceived quality, green trust and environmental friendliness positively affect the continuing relationship with the bank.

To the best of the authors’ knowledge, this is the first study in the context of green banking, i.e. two-dimensional, as it examines the impact of GRBP on consumer-related performance outcomes and confirms that GRBP enhances consumer-related performance outcomes. The findings of the study provide numerous insights to bank managers, environmentalists and policymakers.

How does environmental uncertainty affect the process of starting new hybrid organizations? Our comparative analysis of the formation of two “green” banks – with hybrid goals linked to banking and environmental logics – reveals that shifts in their strategic orientations resulted from attempts to align uncertain and changing resource environments with the composition and goals of the organizations’ top leadership. While the initial idea and goals of the founders were similar, the organizations they established ended up with divergent strategic orientations and senior leadership groups.

Technology has revolutionized banking, and “green banking” has been the most recent phenomenon to have caught the financial world's attention. In this paper, the authors look at how personality traits of individuals influence their adoption and continued use of green banking channels. The authors also propose a comprehensive model integrating the “big five” personality traits (conscientiousness, agreeableness, extraversion, openness and neuroticism) into the Technology Acceptance Model (TAM), along with expectation confirmation theory. The integrated proposed model is used in this longitudinal study to predict the continued use of green banking channels once adopted.

The authors collected data during two time periods about 24 weeks apart from 826 green banking channel users from different regions in India. The data were analyzed using Structural Equation Modeling.

The authors found that traits of agreeableness, conscientiousness and extraversion favor an individual adopting green banking channels, while conscientiousness and openness were only associated with its perceived usefulness (PU).

The results offer valuable insights for understanding the adoption and use behavior of people regarding green banking channels. This study would help develop effective segmentation strategies for promoting green banking channels.

By incorporating the big five, along with TAM and Expectation Confirmation Model (ECM), coupled with “trust” as an additional construct, we believe that our study enlarges the boundaries of Information Technology (IT) theories, especially in the context of green banking channels. This study also contributes to advancing the personality theory by exploring how personality traits significantly relate to adopting and using green banking channels.

The purpose of this article is to study green banking practices, its methods of adoption and importance of practicing green banking. This study also includes the role and contribution of banks in environmental sustainability and UN Sustainable Development Goals.

The current research paper is conceptual in nature, based on a thorough literature review, websites of financial institutions and literature evaluations among other sources. This study has been supplemented by a variety of research journal articles. The websites of many banks including SBI (State Bank of India) and MayBank (Malaysia) were used and reviewed to know about various green banking practices both nationally and internationally and their contribution toward sustainability.

The devastating effects of recent flooding, droughts and extreme temperatures that several people all over the world have experienced compelled everyone to begin thinking about global warming and its consequences, and to do everything that can be done to address this problem. Governments, businesses and individuals all play a part in preventing global warming and creating a more sustainable world. People have to deal with financial institutions, particularly banks, which play a vital role in this environment by assisting in the development of a robust and successful low-carbon economics. They should make more use of environmental data when extending credit and making investment decisions. The project will assist them in proactively improving their environmental performance while also adding long-term value to their company. Businesses having a bigger carbon output may be viewed as riskier in the future, and banks may shy away from funding such businesses in favor of innovative technology solutions that absorb or reduce carbon emissions. As a result, green banking is the order of the day, a source for sustainable development and it will undoubtedly benefit banks, industries as well as the environment at large.

The theoretical implications can be summed in the following points: (1) there is no universally accepted framework for green or sustainable banking so far. However, green banking practices are at different stages of development across countries. As per the case of India, green banking practices are at a development phase in India, and green processes have a significant impact on sustainable development. (2) The study is one of the first of its kind in the academic literature as it links green banking practices with sustainability besides discussing green banking practices of the top public sector Bank of India and top commercial bank of Malaysia. Despite the significant contributions made by this study, many disadvantages should be addressed for future research. The present work was chosen for comfort, it was restricted to green banking practices of two banks only, which limits conclusion and interpretation of outcome to some extent Future research can be conducted by a comparative study with the top green banks or with the cleanest country of the world or green banking practices by those banks toward sustainability in that country can also be a good area for research

Managerial implication: The study is extremely helpful to the banking industry in determining the scope of green banking initiatives in sustainable development. This study is a prime study in India to interrelate banking industry towards sustainability and two UN SDGs besides green banking practices of banks. This paper has noted the areas where the banks can make progress for the greener, sustainable economics. It has also aided the banking industry in identifying areas for development so that it may focus on improving social satisfaction and satisfaction of stakeholders across its operating areas. The study is also very helpful for banks to comprehend how vital these green initiatives, especially green processes, are to improve sustainability.

The study will serve as a gauge for banking actions toward greener nations and a greener world since these are the efforts toward Carbon Free World, Efforts for controlling global warming, efforts for the greener planet in general which undoubtedly is a significant long-term service to society a reason for better climate and better tomorrow.

This paper identifies the need for green banking in sustainability. This article also summarizes the notion of green banking besides outlining some methods and analyzing green banking initiative by SBI (State bank of India) of India, MayBank of Malaysia & UNSDG .

Commercial banks are the financial powerhouses of a nation that can create a penetrating impact at the grassroots level. This study aims to investigate the demand-side drivers of green banking purchase intention by extending the popular theory of planned behavior (TPB) model.

This study used a mono-method research approach to collect customers’ cross-sectional responses using structured questionnaires. The data were further analyzed using CB-SEM.

This study points out that attitude, subjective norms, perceived behavioral control and environmental concern are demand-side factors that drive the intention of individual customers to adopt green banking services. The moderating roles of collectivism, age and gender are also discussed in this study.

The present study’s results suffer from mono-method bias as they are based on primary data analysis alone. This limitation can be addressed by incorporating a mixed-method approach.

Several policy suggestions are offered based on the findings on improving green banking adoption among individual customers. The proper incorporation of these guidelines will expedite a nation’s aspirations for sustainable economic growth.

To the best of the authors’ knowledge, this is the first study to explore the demand-side factors that drive Omani customers’ intention to adopt green banking. Moreover, this study extends the TPB with environmental concern and personal values to examine the green banking adoption by individual customers.

Purpose: Progression is an unpreventable reality of presence, and banking is no exclusion. Cash transformers and moneylenders from times gone past are great agents today. Cash held in trust became store taking, and money advancing became credit making; over an extended time, banks transformed into a need, and the occupation of banks, transformed into a critical piece of monetary reality. Banks’ turn of events and headway has been mind-boggling, with the latest frenzy being intuitive media banking. The chapter additionally framed the amazing open doors and dangers for banks because of the presentation of innovations and how banks are making the most of the open doors and endeavouring to cure the risks. The financial area in India is a lifesaver for the country. Indian banks could become the fifth most prominent on earth by 2020 and the third most prominent by 2025.

Methodology: This study has given auxiliary information. Furthermore, it’s gathered from the holding bank of India concerning utilisation by various banks. Which utilised graphic review including mean mode middle.

Finding: After the review, we find that sight, sound, and green banking have become fantastic assets for the baking area. During COVID-19, the utilisation of mixed media expanded in contrast to a year ago.

Significance: The review featured sight and sound and green banking sealed spine in COVID -19 and is utilised expanded after this pandemic.

This research analyzes the green activities implemented by banks in Indonesia following a new regulation on sustainable finance and the role of slack resources to fund the initiatives. Green practices of 35 banks in 2020–2021 were evaluated through the disclosure using green banking disclosure index (GBDI). The results show that the green practices have been disclosed adequately; however, no significant association was found for the role of financial and potential slack resources. This reflects the facts that the green activities might not have been adequately implemented and the organization’s resources might not have been allocated to support the green practices. The research periods that were still overloaded with COVID-19 issue might hinder the banks from the adequate and appropriate allocation of resources toward green practices. This research recommends a prioritization approach for the implementation of the sustainable finance regulation by banks and authorities through the increased implementation of substantive green practices, not only the increased disclosures.