Assessment of Green Banking Performance

Giedrė Lapinskienė () and Irena Danilevičienė
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Giedrė Lapinskienė: Faculty of Economics, VIKO Higher Education Institution, Saltoniškių 58, LT-08105 Vilnius, Lithuania
Irena Danilevičienė: Faculty of Economics, VIKO Higher Education Institution, Saltoniškių 58, LT-08105 Vilnius, Lithuania

Sustainability, 2023, vol. 15, issue 20, 1-16

Abstract: Internal and external pressures are pushing the financial system towards an increasingly environmentally responsible orientation. The damaging practices of green-washing necessitate the search for new ways of monitoring. The question then arises, how can one measure the actual degree of greenness of a banking industry? This study aims to create a new methodology framework to measure green performance in the banking industry using multi-criteria methods. We offer a theoretical contribution. First, a set of criteria was identified at the theoretical level. Second, the criteria were evaluated by practitioners and aggregated using the ‘TOPSIS’ method. This index may constitute a basis for ranking banks. The results showed that the most important factors to be considered when evaluating the performance of green banking are the greenness of the customers, the development of innovations leading to a green economy, the availability of green financial products and services, and the promotion of green education. These results lead to the conclusion that both banks and clients should become “greener” and utilize more green innovations and financial products/services.

Keywords: banking industry; green performance; multicriteria (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:20:p:14769-:d:1257847

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