Green Banking Adoption

Abstract

Today, commercial banks of the most environmentally affected countries invest voluntarily in social and environmental activities that targets socially-responsive business in the form of green banking. However, state-owned banks often encounter challenges in doing so since they operate in centralized manner and often lack in resources, government support and client base compared to commercial banks. Moreover, green banking initiates major changes in working environment and alters the provision of banking services for bankers in developing countries like Bangladesh. Given such challenges, it is important to examine the attitude of bankers working in state-owned banks towards the adoption of green banking. Findings claim that central bank regulations, followed by facilitating conditions and environmental concerns, are some of the factors that influence bankers' overall perceptions. Results indicate that bankers are fairly pragmatic in developing general attitudes towards the use of green banking as part of their work activities in all state-owned banks.

Systematic Review of Green Banking Adoption: Following PRISMA Protocols

“…Lastly, the theory of diffusion of innovation can be used to explain the variables that influence the adoption of any new system (Chiu et al, 2017). Moreover, the literature of GR-banking mainly viewed UTAUT (Bouteraa et al, 2020;Nisha et al, 2020), social responsible investment theory (Ibe-enwo et al, 2019;Rehman et al, 2021), attractiveness theory (Iqbal et al, 2021), perceived risk theory (Iqbal et al, 2021), TPB (Taneja & Ali, 2021), self-regulation theory (Burhanudin et al, 2021) andTAM (Naruetharadhol et al, 2021).…”

“…A few studies have also employed regression, ANOVA and Chi-square method. GR-banking studies have used different supporting theories such as social responsible investment theory (Alshebami, 2021;Ibe-enwo et al, 2019;Igbudu et al, 2018;Rehman et al, 2021), UTAUT (Bouteraa et al, 2020;Iqbal et al, 2018;Nisha et al, 2020;Rifat et al, 2016), UTAUT2 (Singh & Sahu, 2021), technology acceptance model (Naruetharadhol et al, 2021;Nisha, 2020;Shrivastava et al, 2019), stakeholder theory (Nisha, 2020), attractiveness theory (Iqbal et al, 2021), perceived risk theory (Iqbal et al, 2021), theory of planned behaviour (Burhanudin et al, 2021;Taneja & Ali, 2021), theory of reasoned action (Gill et al, 2021), self-regulation theory (Burhanudin et al, 2021), corporate environmental ethics ideology (Bukhari et al, 2022) and legitimacy theory (Chen et al, 2022). A few studies on GR-banking did not refer to any theory and instead built their studies on previous literature.…”

“…The study by Shantha (2019) identified a significant impact of awareness, trust, benefit, perceived value, and security and privacy on the intention to use GR-banking. The mainstream studies have considered performance expectancy, effort expectancy, facilitating condition (Bouteraa et al, 2020;Iqbal et al, 2018;Nisha et al, 2020;Rifat et al, 2016;Shafique & Khan, 2020), environmental concern (Bryson et al, 2016;Iqbal et al, 2018), usefulness and ease of use (Naruetharadhol et al, 2021;Nisha, 2020;Shafique & Khan, 2020;Shrivastava et al, 2019). However, various other consumer-related factors are neglected by past GR-banking studies such as religiosity, moral norms, environmental knowledge and GR experience.…”

“…Considering the critical need for environmental sustainability (Bhatia & Tuli, 2014), many countries are implementing environment-friendly policies, often through their financial sectors (Aluni & Ray, 2015;Nisha et al, 2020), such as banking, which is a leading financer (Ellahi et al, 2021). Banks are pivotal in any economy since the funding decisions of banks affect a wide range of businesses and industries (Nisha et al, 2020;Yadav & Pathak, 2013).…”

“…Considering the critical need for environmental sustainability (Bhatia & Tuli, 2014), many countries are implementing environment-friendly policies, often through their financial sectors (Aluni & Ray, 2015;Nisha et al, 2020), such as banking, which is a leading financer (Ellahi et al, 2021). Banks are pivotal in any economy since the funding decisions of banks affect a wide range of businesses and industries (Nisha et al, 2020;Yadav & Pathak, 2013). Previously, the banking sector was not considered environmentally harmful (Ahuja, 2015); however, later it was determined that banks also contribute to environmental pollution through their operations (Koiry et al, 2017) and harmfully affect the natural environment directly and indirectly (Bukhari et al, 2020a;Meena, 2013).…”