Measuring Green Banking Practices on Bank’s Environmental Performance: Empirical Evidence from Kathmandu valley

Abstract

The research paper aims to analyze the impact of green banking practices on bank’s environmental performance in Nepal. The casual relational research design has been adopted in the study. The simple and stepwise multiple regression analysis have been performed to accomplish the objective of the research. The research paper follows cross-sectional qualitative research with descriptive outcome. The Chronbach’s Alpha has been used to analyze the reliability of instruments and data. The 189 samples have been collected from the banks using convenience sampling method. The SPSS software has been used to tabulate and analyze the data. The research paper concluded the energy efficient equipment and green policy posed the significant impact on bank’s environmental performance; green loan and green project as not. Similarly, the environmental training contributed mild to bank’s environmental performance. The findings of the paper suggested the role of banks and government in encouraging environmentally sustainable technologies as highly important for increasing bank’s reputation and awareness among customers.

The mediating role of stakeholders on green banking practices and bank’s performance: The case of a developing nation

“…Moreover, energy-efficient equipment and a well-designed environmental policy along with employee training and awareness sessions also contribute to the bank’s environmental performance. In Bangladesh, green funding is promoted to expand the environmental performance of the banks consequently leading to the economic development of the country [ 38 , 39 ]. Choudhury et al, [ 40 ] suggest that greening the banking sector and taking an environmentally proactive approach can result in functional improvements and operational efficiencies in the banking sector.…”

An Empirical Study in Nepalese Commercial Bank’s Performances on Green Banking: An Analysis From the Perspective of Bankers

“…The environmental concern, potential for the profitability, energy efficient equipment, in-house green decoration, electronic transactions, green loan, risk minimization, paperless statements, green project, solar energy consumption, green policy, internet banking, pressure from stakeholders, mobile banking, green lending policy and environmental trainings are independent variables (Arshad et al, 2011;Sharma, 2013;Sharma et al, 2014;Sharifi & Hossein, 2015;Masukujjaman et al, 2017). It is common understanding of practice of green banking, which supports to reduce the extreme use of energy, power and paper (Risal and Joshi, 2018). Furthermore, green banking implies the bank without pollution through which it is possible to use environment friendly products and/or instruments Rai et al, 2019).…”

“…In such circumstances, to substantially support the discussion over the need and significance of green banking practices, Yajurvedi (2015) contented that such practice is the way how banks are competing through bringing changes in their operation pattern policy wise and Lalon (2015) furthered this viewpoint by contending that customers' attention can be tapped strategically in environmentally benefitting the society. In the context of Nepal, Risal and Joshi (2018) provide the precise evidence of Laxmi bank in green banking practice that has been facilitating customers through easy transaction; avoidance of customer counter delay, awareness on digitalization and easy financing and protection of environment.…”