The Emergence of Green Banking: A Sustainable Financing Strategy for Protecting Against Deforestation in ASEAN

Abstract

ASEAN countries face significant environmental challenges contributing to climate change, biodiversity loss, deforestation, and soil degradation. Green banking can help redirect investments toward environmentally friendly activities and discourage deforestation by incentivizing sustainable financing and penalizing unsustainable practices. The article examines the potential benefits of green banking in promoting sustainable financing and discusses the challenges and opportunities for its implementation in ASEAN countries. This article was prepared using a simplified PRISMA method using selected literature and legal materials. The findings suggest that green banking can be vital in promoting sustainable financing and addressing deforestation in ASEAN countries. However, it requires a collaborative effort from stakeholders, including financial institutions, policymakers, and civil society. Importantly, there is a need for legal norms in several ASEAN to be carefully reformulated to support green banking performance.

Top Management Commitment as a Moderator in the Relationship Between Green Banking Adoption Practices and Performance: Evidence from India

“…Though the performance of banks is assessed in terms of market value, growth, number of customers, customer satisfaction, efficiency and productivity (Bikker & Bos, 2008), green banking performance includes environmental and social performance (Selvam et al, 2016). One of the recent studies has reported that green banking helps redirect investments towards environment-friendly activities by organisations, which reduces soil degradation, deforestation and biodiversity loss (Hermawan & Khoirunisa, 2023).…”

“…Growing environmental concern has resulted in a radical change in the way banks conduct business (Ahuja, 2015;Bowman, 2010). Furthermore, attention has been directed towards environmentfriendly banking practices (Hermawan & Khoirunisa, 2023;Meena, 2013;Shakil et al, 2014). Green banking evolved in the last decade to address banks' negative influence on the environment (Rehman et al, 2021).…”