THE IMPACT OF GREEN BANK GOVERNANCE ON SUSTAINABLE ECONOMIC DEVELOPMENT

Abstract

Green banking has emerged as a critical instrument for promoting sustainable economic development in Albania, yet adoption remains limited due to multiple challenges. This study examines public perceptions of green banking, focusing on awareness levels, perceived benefits, barriers to adoption, and demand for green products. A cross-sectional survey was conducted with 350 respondents from urban and rural areas using a structured questionnaire distributed online and in person. Data were analyzed using descriptive statistics and thematic analysis. Findings show moderate awareness (42 percent), strong belief in green banking’s role in economic growth, job creation, and environmental protection, but also highlight barriers such as high initial costs, limited knowledge, and regulatory hurdles. Despite these, optimism is high, and demand for tailored green products is notable. The study concludes that targeted policies, incentives, and education are essential for accelerating adoption, positioning green banking as a key driver of Albania’s sustainable transition.