Determinants of Green Finance Adoption in Emerging Economies: The Role of Regulations, Management Commitment, and Technology Competence

This study examines the factors influencing the adoption of green finance in the banking sector, focusing on the impact of green banking regulations (GBR), management commitment and support (MCS), and green technological competence (GTC) on the intention to adopt green finance (IGF). The research employs Structural Equation Modeling (SEM-PLS) with data collected from banks in Pakistan to explore these relationships. The results indicate that both GBR and MCS significantly enhance the intention to adopt green finance, highlighting the critical role of regulatory frameworks and leadership commitment in promoting sustainability within financial institutions. However, the study finds that GTC does not have a significant impact on IGF, suggesting that technological competence alone may not be sufficient to drive green finance adoption. Additionally, the moderating role of attitudes towards green finance (AGF) was not supported, indicating that other organizational and environmental factors may play a more substantial role in shaping green finance practices. These findings contribute to the growing body of literature on sustainable finance, offering insights for policymakers, financial institutions, and stakeholders seeking to foster green finance initiatives. The study emphasizes the need for comprehensive regulatory support and management involvement to drive the transition towards more sustainable financial practices.