Green Banking Practices: Enhancing the Environmental Performance of Banks

Green banking practices are essential for the financial sector to promote environmental sustainability. This study investigates the green banking practices and environmental performance of the banking sector, aiming to identify the key determinants of the perception of green banking practices related to environmental sustainability in the financial sector. To do this, a comprehensive survey was conducted to gather data from banks located in Faisalabad and their customers. The analysis revealed that bank employees generally have positive perceptions of their institutions' green banking practices, with a majority rating these practices highly. Customer and employee-related practices also positively impacted environmental performance, although operational practices had a lesser effect. The findings indicate that strategic improvements in bank policies, customer, and employee-related practices significantly enhance the environmental performance of banks, with policy-related practices having the most substantial impact. Longitudinal studies can enhance the understanding of green banking practices' effectiveness through stakeholders’ engagement to attain environmental sustainability in the financial sector