Green banking practices, bank reputation, and environmental awareness: evidence from Islamic banks in a developing economy

Ikram Ullah Khan (), Zahid Hameed (), Safeer Ullah Khan () and Manzoor Ahmad Khan ()
Additional contact information
Ikram Ullah Khan: University of Science and Technology Bannu
Zahid Hameed: Prince Mohamed Bin Fahd University
Safeer Ullah Khan: Gomal University
Manzoor Ahmad Khan: Gomal University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 6, No 96, 16073-16093

Abstract: Abstract Fulfilling the international considerations of environment, societal, and governance challenges, the financial industry, especially banks, has initiated “Go Green” practices to help sustain the environment and enhance “banking” across the globe. Amidst the green and climate-friendly drives, there is scarce literature highlighting the banks’ green practices, environmental awareness, and their effects on bank reputation, especially the reputation of Islamic banks. This study aims to investigate the green banking practices of Islamic banks in a developing Islamic country. Focusing on the greening ambitions of banks, this study argues that the reputation of Islamic banks can be better enhanced through adopting green banking initiatives that will beget better climatic outcomes in Muslim societies. Therefore, the study illumes green banking practices and their impact on the reputation of Islamic banks in Pakistan. Moreover, this study checks the moderation effect of employees’ environmental awareness on banks' reputation. The study used deductive rationale and quantified the employees' data to unravel their go-green perceptions and bank green activities. In this regard, the 390 response data, collected through a survey from the employees of Islamic banks, were analyzed through Smart-PLS, using structural equation modeling technique. The study finds that banks’ employees-related practices (ERPs), daily operations-related practices (DORPs), customers-related practices (CRPs), and banks’ policy-related practices (PRPs) have a significant positive influence on bank reputation. The authors also find that there is a significant moderating impact of environmental awareness between the relationships of ERPs, DORPs, CRPs, PRPs, and bank reputation. The study might increase understating and enlighten regulators and bank management to sustainably transform their operations to green banking practices, particularly adding to the environmental sustainability in Pakistan.

Keywords: Green banking; Environmental awareness; Bank reputation; Islamic banks; Pakistan (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10668-023-03288-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:endesu:v:26:y:2024:i:6:d:10.1007_s10668-023-03288-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-023-03288-9

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().