Determinants of Green Financing and Bank Performance: Implications for Sustainability

This study investigated the determinants of green financing and bank performance: Implications for sustainability. The research design was a-cross-sectional survey and structural equation modelling served to analyse the data. The results show that pressure from host communities, customers and competitors can influence the implementation of green financing. In addition, the implementation of green financing attracts goodwill and goodwill mediates the relationship between green financing and profitability. Banks’ sustenance of green financing will stimulate financing of green projects and thus, lead to the enhancement of a sustainable environment. However, top management pressure will not have any significant influence on its goodwill.