Green Banking and Perceived Financial Performance of Nepalese Commercial Banks

Abstract

This research investigated the impact of green banking adoption on the financial performance and perceived financial performance of Nepalese commercial banks. The main objectives were to identify key factors driving green banking adoption, explore relationships with perceived sustainability, analyze the impact on financial performance, and assess the current state of green banking practices. The methodology involved collecting primary data from 373 middle-level employees in five Nepalese banks using closed-ended Likert scale questionnaires. Analysis was conducted using SPSS and Excel, employing descriptive and inferential methods, providing insights into green banking practices and their impact on financial performance and perceived sustainability. The research revealed that banks’ investments in green banking (green product and services, green investment, green HRM, green business strategy) had a significant impact on the financial performance of commercial banks in Nepal. This suggested that commercial banks could enhance their performance by investing in green banking practices. The research also identified key factors driving green banking adoption and revealed positive relationships between green banking practices and perceived sustainability in the banking industry. Policymakers and banks could benefit from the study’s insights to develop effective green banking strategies and foster sustainability in the banking industry, promoting environmentally responsible practices and enhancing overall performance. Overall, the study contributed significantly to fostering sustainability within the banking sector, empowering banks to enhance their performance while contributing positively to the environment and society.