http://ar.cou.ac.bd:8080/xmlui/handle/123456789/388 2026-09-06T22:59:58Z 2026-09-06T22:59:58Z Rabby, Md Abday http://ar.cou.ac.bd:8080/xmlui/handle/123456789/389 2026-08-10T03:43:24Z 2026-04-20T00:00:00Z

An Empirical Study on Green Banking Practices and Financial Performance of Selected Islamic Banks in Bangladesh Rabby, Md Abday This paper examines the impact of green banking on the financial performance of the chosen Islamic banks in Bangladesh. It has its basis on the increasing significance of sustainable finance, the Bangladesh Bank's push towards green banking regulation, and the ethical fit between Islamic banking and green finance. The research is based on the quantitative explanatory design that examines the panel data of 10 Islamic banks between 2014 and 2023. The dependent variable is the Return on Assets (ROA), the main explanatory variables are the green banking practices and green banking growth, with controls being the bank size, capital adequacy ratio, and liquidity ratio. Annual reports, financial statements, bank publications, and Bangladesh Bank documents were used as secondary data, and pooled OLS, fixed effects, and random effects models, along with diagnostic tests, were used to analyze them in STATA. The results indicate that there is a significant difference in the profitability and green banking indicators among banks, and heteroskedasticity, autocorrelation, and multicollinearity of certain control variables. On the whole, the research concludes that green banking has not yet been able to bring substantial short-term financial benefits to Islamic banks, but instead, it is crucial for long term sustainability. It thus suggests greater policy incentives, better reporting of green finance and enhanced strategic implementation of sustainability in banking operations. Moreover, to demonstrate the difference in the financial performance and green banking a comparative analysis of a conventional bank (Dhaka Bank PLC) and an Islamic bank (Islami Bank Bangladesh PLC) was done using data of 2023 to point out the difference between conventional and Islamic banks in terms of their financial performance and green banking practices.

2026-04-20T00:00:00Z