Assessing the Association of Factors Influencing Green Banking Practices

Abstract

Purpose: Nepal has a novel chance to acquire from green financing. The study aims to identify factors influencing and their association with Green Banking Practices in Nepalese context.

Design/Methodology/Approach: It is a Pragmatic philosophy-based survey research. The data were gathered using convenience sampling through Google link among executive employee of bank. The SPSS software utilized for the correlation, regression, ANOVA and Variance Inflation Factor multicollinearity analysis and hypothesis testing.

Findings/Result: The stakeholder demand, environmental interest, and brand image are affecting green banking practice. Among them, the rand image emerged as the most influential factor.  Green banking plays a crucial role for sustainability. Implementing green banking practices creates new ways for product differentiation.  Green banking serves as a means for individuals and businesses to contribute significantly to the environment and make the world a better place to live. Embracing green banking promotes environmental friendliness along with reduction in risks and costs for banks, enhancement of their reputation, and contribution to the common good. It is crucial for banks in Nepal to recognize their responsibilities towards the environment, society, and the economy, enabling their participation and survival in the global market. Green banking practices not only contribute to a sustainable environment but also strengthen brand image and attract environmentally conscious customers.

Originality/Value: The identification of these influencing factors will aid banks, regulators, and policymakers in promoting the green financial practices in Nepal.

Paper Type: Research paper