This paper explores the challenges and prospects associated with the adoption of Islamic banking in Afghanistan. Despite the global growth and acceptance of Islamic banking by approximately 50 countries by 1997, Afghanistan only embraced it between 2008–2009. The decision to convert conventional banks to Islamic ones, driven by the involvement of interest rates (riba) in the prevailing system, necessitates a thorough examination of the challenges and the need for an appropriate response. The study employs qualitative, analytical, and exploratory methods, reviewing secondary sources and conducting unstructured interviews with key stakeholders, including officials from the Da Afghanistan Bank (DAB), staff of Islamic banking institutions, experts in Islamic banking and finance, and consumers. The findings reveal that the challenges in promoting Islamic banking in Afghanistan are more complex and multi-layered than commonly understood, stemming from the legal system, regulatory capacities and mindset, banking services, and public perception. The paper emphasizes the importance of addressing these challenges comprehensively to safeguard the already fragile economic and financial sector. Failure to do so may lead to further deterioration. This research contributes to the existing body of knowledge by shedding light on the unique challenges and prospects of Islamic banking in Afghanistan, providing valuable insights for policymakers, regulators, and practitioners in shaping an effective transformation strategy.

This study aims to examine perceived green human resource management (GHRM) influence on perceived in-role and extra-role green service behaviour. Specifically, drawing upon social identity theory, authors tested how green commitment mediates the relationship between GHRM and employees’ green behaviour. The study employed cross-sectional research design in a non-contrived setting for data collection from 203 responses of banking sector employees in Afghanistan. Partial least squares structural equation modelling is applied by using SmartPLS 3 software. The empirical results confirmed that green commitment mediates the relationship between GHRM and employees’ in-role and extra-role green service behaviour. This study explores green commitment as novel mechanisms through which GHRM practices influence employees’ in-role and extra-role green behaviour in organisations.