Sustainable banking innovation: aligning operational practices with green financing goals

Purpose This study aims to investigate the effect of bank operations-related practices (BORP) on green financing (GFIN) by including the mediating role of green banking activities (GBAC) and the moderating roles of employees’ green values (EMGV) and green knowledge sharing (GKSH). Design/methodology/approach This research used a structured questionnaire to obtain primary data from 518 bank employees. In this regard, a stratified sampling method was used to divide the bank sector into four major groups as follows: conventional banks, Islamic banks, microfinance banks and specialized banks. Additionally, a two-stage structural equation modeling (SEM) technique was applied, where measurement models were used to ensure the validity and reliability of the instrument. Furthermore, the structural model was employed to assess the strength of relationships among the key variables. Findings The current study indicates a significant and positive influence of BORP on GFIN and GBAC, as well as a direct effect of GBAC on GFIN. Additionally, results showed that GBAC directly mediates the relationship between BORP and GFIN. Moreover, the study also confirmed the moderating effect of EMGV in the association of BORP and GBAC and the moderating effect of GKSH between GBAC and GFIN. Originality/value This study uniquely integrates operational, behavioral and institutional factors to assess their combined impact on GFIN. By incorporating employee-driven moderating variables, it highlights the crucial role of human capital in sustainable banking. The findings provide valuable insights for banks and policymakers to enhance green financial strategies.