Underpinning the benefits of green banking: A comparative study between Islamic and conventional banks in Bangladesh

Sharmeen, Kashfia; Hasan, Rashedul; Miah, Mohammad Dulal

doi:10.1002/tie.22031

Cited by 27 publications

(28 citation statements)

References 49 publications

(61 reference statements)

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“…It indicates that Islamic Sharīʿah-compliant firms are more likely to invest in climate finance than conventional firms. Our finding is consistent with the recent results and arguments of Sharmeen et al (2018), , Binmahfouz (2012) and Ahmad and Hassan (2007). Thus, the empirical result supports H2.…”

Section: Ols Resultssupporting

confidence: 93%

“…Thus, it has a value of 1 if the firm is regulated under Islamic Sharīʿah laws, and 0 otherwise. Sharīʿah firms comply with Sharīʿah principles that lead to better environmental and climate change performance than non-Sharīʿah firms do(Sharmeen et al, 2018).KZ proxies for financial constraints, representing the firm's ability to raise climate finance. It is calculated according toLamont et al (2001) andSchauer et al (2019) as follows:…”

mentioning

confidence: 99%

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Determinants of climate financing and the moderating effect of politics: evidence from Bangladesh

Bae¹,

Masud²,

Rashid³

et al. 2021

SAMPJ

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Purpose There was no previous firm-level empirical research to examine cross-sectional differences in climate financing. The purpose of this study is to determine the key elements of the climate investment decision by business management. The study also explores how politics and media influence corporate climate investment decisions. Design/methodology/approach The study incorporates a theoretical lens of institutional, stakeholder and media setting agenda to explain the relationship of climate finance with political connection and media influence along with other institutional and firm-specific variables. The sample of the study is collected from the financial sector firms that financed climate/green projects. In total, 178 firm-year observations are documented during 2014–2018. The unbalanced panel data model uses a fixed effect and a 2SLS regression model to test a set of hypotheses. The study uses several alternate methods to check and verify the reliability of the study. Findings The empirical findings show that climate finance is positively and significantly associated with Islamic Sharīʿah and media visibility, and negatively and significantly related to financial constraints. Moreover, the empirical results document that listing regulation has no significant influence on climate investment. The political connection plays a negative moderating role between media and climate finance. The result indicates that if a former or current politician is on the board, the media’s positive impact on climate financing diminishes. Practical implications The study has significant managerial implications especially to the regulatory bodies, business management and policymakers. The central bank in the developing countries needs to take into consideration the finding of the study promoting climate/environmental/green finance and investment. Islamic Sharīʿah promotes climate finance that would be a prominent indicator for Islamic financial institutions. Social implications Politics can deter positive decisions on climate financing such that it negatively influences the media’s role of a watchdog of the society in developing countries. Climate investment would be an important mechanism to reduce carbon emissions and environmental hazards and to solve many social problems. Originality/value The study provides first-ever firm-level evidence of the determinants of climate finance and investment that has a significant value in the area of climate change and green investment by the financial firms.

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Section: Ols Resultssupporting

confidence: 93%

mentioning

confidence: 99%

Determinants of climate financing and the moderating effect of politics: evidence from Bangladesh

Bae¹,

Masud²,

Rashid³

et al. 2021

SAMPJ

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“…(5) To find research gap between the current strategy and the ideal strategy of utilizing CSR funds to support GBS. (6) To identify & analyze the various research agendas related to GBS practices and GCSR activities. (7) To analyze the green banking practices based on Green CSR activities for further research using qualitative ABCD analysis framework as stakeholders' perception.…”

Section: Objectives Of This Studymentioning

confidence: 99%

“…Furthermore, studies highlight about green banks with its holistic effort to address the solution pertaining to environmental problems like climate change, deforestation, loss of biodiversity so on. Besides these overwhelming effects banks confer by identifying and creating certain opportunities for consumers benefits (Sharmeen, K., et al (2019) [6]). Apart from these, banks accommodate by providing loans for individuals who indulge in environmental protection activities.…”

Section: Introductionmentioning

confidence: 99%

A Review-Based Research Agenda on Green Banking Service Practices through Green CSR Activities

Prabhu

Aithal

2021

IJMTS

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Purpose: The modern banking activities are submerged with green loans, green credit cards, green checking accounts, and also green mortgage along with online banking aspects. The purpose of this study is to identify the research gap and possible research agendas of connecting green banking practices and corporate social responsibility (CSR) activities of some chosen private and public sector banks in India. Design/Methodology: This study reviews the current status of various green banking practices of the banks and their corporate social responsibility activities of selected private and public banks of India. The data is collected from scholarly literature and internet sources. Findings: Through this review-based study, the current status of green banking practices and corporate social responsibility activities are identified. The green initiatives of public and private banks such as internet banking, mobile banking, green debit, and credit card loan are analyzed. Based on the current status and the ideal strategy of using CSR funds for such green activities, the research gap is determined. Based on the research gap, various research agendas to connect green banking practices and corporate social responsibility activities are developed and analyzed. Originality: This review-based research paper identifies the current status, research gap and analyses the research agendas related to strategies of utilizing CSR funds on green banking practices to fulfill the dual objectives of social responsibility and intensifying the brand value to retain existing and attract new customers. Paper Type: Review-based research analysis

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“…The adverse consequences of climate change require a serious and united response from both industrialised and advanced, as well as emerging countries (Sharmeen et al, 2019). The response to climate change effects involves radical changes in how global economies, together with daily life, are organised.…”

Section: Introduction 11 Backgroundmentioning

confidence: 99%

Benefits That Islamic and Conventional Banks Can Attain by Implementing Green Banking

Sharmeen¹,

Yeaman²

2020

JIMF

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This paper aims to ascertain the benefits that Islamic and conventional banks inBangladesh can reap by implementing green banking, and also the drivers thatmotivate banks to behave environmentally. The Green Compliance Index (GCI) wasintroduced here to measure banks’ environmental behaviour. It was prepared basedon central bank guidelines. In this study, with the participation of all 40 privatecommercial banks (PCBs), 32 conventional banks and 8 Islami Shariah-based PCBs,firm specific variables were collected through content analysis of the GCI. Structuralequation modelling-partial least squares (SEM-PLS), together with the bootstrappingmethod, were used to evaluate the research data. These were collected and sortedfrom the FY annual report of 2018. For further support, a generalized linear model(GLM) was used to assess the outcomes. The results show that the effects of greencompliance on possible benefits are significantly higher for Islamic banks. In contrast,these banks comply less with the green banking codes than conventional banks do inBangladesh. Company size and the independence of bank directors appear to have asignificant influence on compliance with the green banking codes, while governancedoes not show such an association for either group of banks. As Islamic banks havea greater scope to attain benefits, policymakers should introduce more interactivegreen banking products and loan schemes for prospective consumers, especially inindustrial sectors where there is a greater possibility of being sustainable andenvironmentally friendly. Based on the findings, policy recommendations are madefor practitioners, regulators and future researchers.

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Underpinning the benefits of green banking: A comparative study between Islamic and conventional banks in Bangladesh

Cited by 27 publications

References 49 publications

Determinants of climate financing and the moderating effect of politics: evidence from Bangladesh

Determinants of climate financing and the moderating effect of politics: evidence from Bangladesh

A Review-Based Research Agenda on Green Banking Service Practices through Green CSR Activities

Benefits That Islamic and Conventional Banks Can Attain by Implementing Green Banking

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