Green Banking Practices and Perceived Bank Performance

Mediating Role of Green Financing

Authors

DOI:

https://doi.org/10.32674/79j2xy80

Keywords:

Green banking practices, green finance, green taxonomy, environmental performance, performance of banks, sustainable banking

Abstract

This study examines the impact of green banking practices (GBP) on perceived bank performance (BP), with a specific focus on the mediating role of green financing (GF). It analyzes four GBP dimensions, namely employee, operation, customer, and policy-related, using data from 269 banking professionals. Results show that GBPs and GF positively affect both environmental and financial performance, with GF partially mediating this relationship. Among GBP components, customer-related practices have the strongest impact, followed by employee and policy-related efforts, while operation-related practices show no significant influence. The findings provide strategic insights for banks and policymakers: strengthening green financing tools, integrating environmental policies into operations, and boosting customer and employee involvement are essential for sustainable outcomes. This study contributes to the evolving discourse on green finance by highlighting actionable pathways for improving both environmental and financial performance in the banking industry.

Author Biographies

  • Bharat Singh Thapa, Tribhuvan University, Nepal

    Dr. Bharat Singh Thapa is an Assistant Professor at the Central Department of Management, Tribhuvan University, Nepal. He has been a visiting professor at the University of Padova, Italy, and serves on the Academic Board of its Joint International PhD Program in Human Rights, Society, and Multi-level Governance.

  • Bibek Dhakal, Tribhuvan University, Nepal

    Bibek Dhakal is a graduate of the School of Management, Tribhuvan University, Nepal. He has been working as an engineer and is currently engaged in the field of carbon financing, focusing on mechanisms that support sustainable development and climate action.

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Published

2025-07-02

Issue

Vol. 4 No. 1 (2025): Interdisciplinary Journal of Innovation in Nepalese Academia

Section

Research Articles

License

Copyright (c) 2025 Interdisciplinary Journal of Innovation in Nepalese Academia

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How to Cite

Green Banking Practices and Perceived Bank Performance: Mediating Role of Green Financing. (2025). Journal of Innovation in Academia , 4(1), 46-68. https://doi.org/10.32674/79j2xy80