Banking for a greener future: a systematic review of sustainable initiatives in South Asia

Muhammad Ashar Asdullah (), Waqas Ahamd Watto (), Ali Ijaz () and Muhammad Zeshan ()
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Muhammad Ashar Asdullah: York St John University
Waqas Ahamd Watto: Superior University Lahore
Ali Ijaz: The Islamia University of Bahawalpur
Muhammad Zeshan: University of the Punjab

Journal of Banking Regulation, 2025, vol. 26, issue 3, No 18, 610-626

Abstract: Abstract The expanding role of green banking in South Asia is examined in this study, with an emphasis on how financial institutions are balancing economic growth with environmental sustainability. Natural resource depletion and climate change are two major environmental issues facing South Asian nations, which is why banks in the region are embracing green practices like ecofriendly loans, green investments, and sustainable products. The effectiveness of these measures is investigated, as are the particular challenges that banks encounter, such as legal constraints and striking a balance between environmental goals and economic expansion. This study offers insights into the many green banking tactics, the function of central banks and regulatory agencies, and the wider effects of these activities on sustainability by completing a thorough literature analysis. Key findings highlight the need for stronger regulatory frameworks, enhanced risk assessment mechanisms, and tailored green banking products that address the region’s specific needs. This study further identifies policy gaps and recommends future research directions to strengthen South Asia’s green finance landscape, emphasizing resilience against climate-related financial risks. Ultimately, the findings aim to guide policymakers, financial institutions, and stakeholders in fostering a sustainable and resilient banking sector in South Asia, aligning with global environmental goals while addressing regional priorities.

Keywords: Sustainability; Green banking; Green products; Climate change; Environmental conditions (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1057/s41261-025-00279-w

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