The Effect of Green Banking Practices on Banks’ Sustainability Performance and Green Brand Image: An Empirical Study of an Emerging Economy

Abstract

This research aims to investigate the significance of implementing green banking (GB) practices on the sustainable achievement and development of a green brand image (GBI) for private commercial banks (PCBs) and state-owned commercial banks (SOCBs) operating in Bangladesh. The study surveyed 397 banking employees from private and SOCBs in Bangladesh. Structural equation modelling (SEM) was applied to identify the significant relationships between the research variables. According to the study’s results, the implementation of GB practices has a positive and significant impact on creating a GBI for banks. Moreover, banks’ GBI has a statistically significant beneficial influence on their sustainability performance. The study also found that daily operations, employees, and green CSR practices of GB have a significant impact on the sustainable performance of banks, while the impact of customer- and policy-related practices is not significant. This research is the first of its kind to examine how GB practices affect the development of a GBI and how the GBI influences the sustainability performance of PCBs and SOCBs in Bangladesh. The study adds to the current body of knowledge by identifying the factors that influence the impact of GB practices on the sustainability performance of banks (BSP) and their role in creating a GBI. The paper discusses significant consequences for policy and provides recommendations for further investigation in the relevant field.