The Major Impact of Green Banking Practice on Profitability of Banking Sector
An Empirical Evidence from Bangladesh
DOI:
https://doi.org/10.20525/ijfbs.v14i1.3223Keywords:
Green banking, Sustainable finance, Regression model, BangladeshAbstract
Bangladesh is an extremely adverse affected country over the world related to environment and ecology due to global warming so that Bangladesh economy experienced many serious problems for global warming. The study is planned by addressing this burning issue and identifying gaps in knowledge after reviewing related literature. The aim of this dissertation is to look into sustainable banking practice, i.e., green banking practice by selected banks. To achieve the aim of the thesis, it is focused on major impact of selected green banking practice on banks profitability and also showed the problems, prospect, suggestion & recommendations for selected banks & stakeholders. In this study, the secondary data are collected from annuals reports during 2011-18 of selected commercial banks. The statistical techniques are used, i.e., descriptive statistics, graphic presentations, ANOVA, linear regression and regression for panel data in Gretl, etc. After analyzing the data, the results of this study inform us of empirical understanding that is there are a poor impact on profitability, i.e., ROA, ROE, and ROI by independent variables i.e., GFI, CRF, OB, GT and GAC of the selected SCBs & PCBs over the study period, because the variation of ROA is only 24% and Variation of ROI is only 39% by independent variables, at the same time ROE has low negative correlations with independent variables because Rho is ?0.235. The comparative position of PCBs is better than SCBs, but both selected SCBs and PCBs' performance are found below satisfactory in most of the aspects of the study during 2011-18.
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