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

Jing Chen; Abu Bakkar Siddik; Guang-Wen Zheng; Mohammad Masukujjaman; Sodikov Bekhzod

doi:10.3390/en15041292

journal article Open Access Feb 10, 2022

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

Jing Chen

Abu Bakkar Siddik

Guang-Wen Zheng

Mohammad Masukujjaman

Sodikov Bekhzod

Energies Vol. 15 No. 4 pp. 1292 · MDPI AG

View at Publisher Save 10.3390/en15041292

Abstract

Every sector of the global economy is faced with environmental problems and their resulting consequences to their day-to-day operations. Due to the rising threat of global climate change, the green banking (GB) concept has been given significant attention in recent green finance literature. Therefore, the main purpose of this study was to identify the impact of GB practices on banks’ environmental performance and sources of green financing of private commercial banks (PCBs) in Bangladesh. Using a survey method, the primary data were obtained from a cross-sectional sample of 322 banking employees of PCBs in Bangladesh. In order to identify the key relationships existing between the study variables, structural equation modelling (SEM) approach was employed. The empirical findings indicated that banks’ employees, daily-operations, and policy-related GB practices have significant positive effects on green financing, contrary to banks’ customer-related GB practice, which was not statistically significant. Additionally, banks’ green project financing exhibited a strong and positive influence on banks’ environmental performance. Moreover, banks’ daily operation and policy-related practices of GB were observed to have significant impacts on banks’ environmental performances, in contrast to banks’ employee and customer-related GB practices. Therefore, major policy implications and directions for future research in the concerned area are discussed.

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Details

Published: Feb 10, 2022
Vol/Issue: 15(4)
Pages: 1292
License: View

Authors

J

Jing Chen

School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China; College of Economics and Management, Xi’an University of Posts and Telecommunications, Xi’an 710121, China

A

Abu Bakkar Siddik

School of Economics and Management, Shaanxi University of Science and Technology (SUST), Weiyang District, Xi’an 710021, China

G

Guang-Wen Zheng

School of Economics and Management, Shaanxi University of Science and Technology (SUST), Weiyang District, Xi’an 710021, China

M

Mohammad Masukujjaman

Department of Business Administration, Northern University Bangladesh, Banani C/A, Dhaka 1213, Bangladesh

S

Sodikov Bekhzod

School of Economics and Management, Shaanxi University of Science and Technology (SUST), Weiyang District, Xi’an 710021, China

Funding

The Xi'an Social Science Planning Fund Award: JX08

Cite This Article

Jing Chen, Abu Bakkar Siddik, Guang-Wen Zheng, et al. (2022). The Effect of Green Banking Practices on Banks’ Environmental Performance and Green Financing: An Empirical Study. Energies, 15(4), 1292. https://doi.org/10.3390/en15041292

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

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