Abstract:
The study aims to ascertain how Green Banking Practices influence the overall Sustainability Performance of Bangladeshi private commercial banks. In response to the mounting worldwide environmental issues, the banking sector's environmentally friendly policies have attracted much interest. Green Innovation (GIN), Green Investment (GI), Green Lending (GL), Green Products and Services (GPS), and Green Processes and Procedures (GPP) are the focus of this study, which aims to examine how these activities impact the sustainability performance of the banking sector of a developing nation, in light of the growing international emphasis on ecological sustainability.
Design/methodology - This research employs structural equation modelling (SEM) to assess primary data collected from 300 employees in different branches of Bangladeshi private commercial banks.
Findings - The results show that all five green banking strategies positively and significantly impact the banks' sustainability performance. Green Investment shows the most important component among these practices, followed by Green Lending, Green Innovation, Green Processes and Procedures, and Green or Sustainable Products or Services. In the discussion part, this study highlights several implications these findings have for theory and practice.
Practical implications—The results suggest banks should prioritize green investment and lending to support sustainable projects and eco-friendly businesses. Also, embracing green innovation, processes, and procedures and offering green products and services will enhance operational efficiency, reduce environmental impact, and meet the growing demand for sustainable financial products, contributing to banks' overall sustainability.
Originality/value—This study is original because it investigates the impact of green banking practices on the sustainability performance of private commercial banks in Bangladesh, an area underexplored in developing countries. It provides empirical information regarding the relationship between green banking and sustainability, presenting policymakers and financial institutions with solutions to improve environmental accountability, sustainable performance, and competitive edge.
Keywords: Green Banking Practices (GBP), Sustainability
