The Impact of Green Finance on the Sustainability Performance of the Banking Sector in Palestine: The Moderating Role of Female Presence

Abstract

This paper investigates the influence of “green finance” on the sustainability performance of banking institutions with a specific focus on the context of Palestine. A structured questionnaire was administered to gather data from a representative sample of 104 credit managers employed within Palestinian banking, utilizing descriptive statistics, structural equation modeling, and multiple regression analysis. This study examines the intricate interplay of the social, economic, and environmental facets of green financing and their impact on sustainability performance. Moreover, the study explores the potential moderating effect of female representation within financial institutions. The findings suggest that gender diversity and exclusivity significantly contribute to reinforcing the favorable association between green finance and sustainability performance. Integrating green finance into the strategic frameworks of financial institutions can yield environmental benefits and enhance both long-term and short-term sustainability performance, particularly in emerging economies such as Palestine. Ultimately, this study offers valuable insights into the evolution of green finance and its consequential effects on the sustainability performance of financial institutions in emerging countries.

Green Finance and Fintech Adoption Services among Croatian Online Users: How Digital Transformation and Digital Awareness Increase Banking Sustainability

“…The findings of this study align with research on the adoption of Fintech, green finance, and digital transformation in the banking industry. For instance, Rehman et al (2023) and Abuatwan (2023) have examined aspects in relation to SMEs and the banking sector, highlighting the role of Fintech in improving banking operations and sustainability. This study also supports the impact of finance on Fintech adoption, which is consistent with Hanafizadeh and Khedmatgozar's (2012) and Namahoot and Laohavichienʹs (2018)…”

“…Various literature trends and research findings strongly support the idea that green finance has a positive impact on raising awareness about issues within the banking industry. Lapinskien ė and Danilevičien ė (2023) and Abuatwan (2023) explore the sustainability performance of the banking sector, and the role of its presence in moderating it reveals that green finance influences practices, awareness within the sector, and people's perceptions. This research suggests that implementing finance strategies can enhance consciousness in banking operations, leading to more sustainable practices.…”

“…This section provides evidence that green adoption has a positive impact on the sustainability of banks. For example, Lee and Shin (2018), Udeagha and Muchapondwa (2023), and Abuatwan (2023) demonstrate how incorporating finance into banking operations not only enhances sustainability but also sets a precedent for the entire industry. This emerging trend shows that the implementation of policy measures and conscious investments contributes to the long-term sustainability of the banking sector.…”

“…This allowed this study to empirically test the existing theory, making use of reliable scales. Four items for Fintech adoption (payment) were adapted from Rehman et al (2023), alongside four items for sustainability and eight items for finance (four for economic green finance and four for social green finance), which were taken from Abuatwan's (2023) research. This study employed a second-order measurement model using finance as suggested by Hair et al (2021).…”

“…For instance,Rehman et al (2023) andAbuatwan (2023) have examined aspects in relation to SMEs and the banking sector, highlighting the role of Fintech in improving banking operations and sustainability. This study also supports the impact of finance on Fintech adoption, which is consistent withHanafizadeh and Khedmatgozar's (2012) andNamahoot and Laohavichien's (2018) findings that emphasize customer awareness in adopting new banking technologies.…”