Title : Green Banking Nexus Banks’ Performance

Authors : Md. Sharif Hossain and Md. Tanvir Ahmed Kalince

Abstract : All parties of the society including banks must fight from their sides against the global warming to make this world a better place. That is why in our society, banks are carrying on green banking activities. They are financing projects which are environment friendly. They are promoting green banking products to their customers. In this way, they are helping Bangladesh to attain sustainable green economy. Thus, the main purpose of this study is to find the impact of green banking on banks’ performance using cross section data of 45 banks in the year 2012. For this study, six different variables namely;loans and advances (LOAN), deposits and other accounts (DEPO), paid-up capital (PAID), investments INV), green banking (GB), and profit after tax (PAT) are considered. From our analytical results, it is found that GB has significant positive impact and INV has significant negative impact on banks’ performance. The Granger F test results to VAR model indicate the bidirectional causalities between PAT and INV, between PAT and DEPO. Unidirectional causalities are found from LOAN, and PAID to PAT, from LOAN and DEPO to INV, and from LOAN to PAID. Thus it can be concluded that in Bangladesh banks should conduct green banking activities more to increase their profitability. This will create sustainable growth for them in the long run. This will result in sustainable green economy in our country. If all parties of the world including banks act responsibly, we can make this world a better place to live for our next generation

Journal : Swiss Journal of Research in Business and Social Sciences Volume : 1 Year : April 2014. Issue : 3
Pages : 1-16 City : Edition : Editors :
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