The determinants of green finance and effect on the banking sector

Gör Yusuf () and Tekin Bilgehan
Additional contact information
Gör Yusuf: University Faculty of Economics and Administrative Sciences, Çankırı, Türkiye
Tekin Bilgehan: University Faculty of Economics and Administrative Sciences, Çankırı, Türkiye

Financial Internet Quarterly (formerly e-Finanse), 2023, vol. 19, issue 4, 80-96

Abstract: This study examines the prerequisites and challenges faced by local and foreign commercial banks in Türkiye in supporting green business initiatives. This study uses backward logistic regression analysis to identify variables affecting green financing practices using annual data from Turkish deposit banks from 2012 to 2021. This study addresses the growing interest in understanding the role of commercial banks in promoting green finance and contributes to the existing literature by revealing the current efforts of Turkish commercial banks in this area. The main findings show that factors influencing green financing practices are derivative financial assets, loans, tangible assets, equity capital, company size, female representation on boards, presence of audit committees and company experience. The study highlights the relationship between these factors and green financing methods adopted by depository banks. It is worth noting that the assets of these banks were built within the framework of green financing and practices such as green buildings, green loans and green bonds were introduced. In addition, the size and experience of custodian banks help influence their green financing practices. The findings provide a framework for policy makers, practitioners and academics who wish to gain a deeper understanding of the dynamics of Turkish financial institutions and green finance.

Keywords: Investment; Green finance; profitability; banking sector; logistic regression; commercial banks (search for similar items in EconPapers)
JEL-codes: G21 G23 M41 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/fiqf-2023-0028 (text/html)

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:vrs:finiqu:v:19:y:2023:i:4:p:80-96:n:7

DOI: 10.2478/fiqf-2023-0028

Access Statistics for this article

Financial Internet Quarterly (formerly e-Finanse) is currently edited by Tomasz Skica

More articles in Financial Internet Quarterly (formerly e-Finanse) from Sciendo
Bibliographic data for series maintained by Peter Golla ().