Determinants of Customer Perception toward Green Banking: A Sustainability-Oriented Assessment in Bangladesh

Farin Sohana and Muhammed Zakir Hossain
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Farin Sohana: Lecturer, Department of Finance and Banking, Daffodil International University-DIU, Bangladesh
Muhammed Zakir Hossain: Associate Professor, Department of Business Studies, State University of Bangladesh, Bangladesh

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Abstract: Green banking has attained heightened global significance as financial institutions implement environmentally responsible policies to foster sustainable development. The central bank of Bangladesh has established guidelines urging banks to incorporate green initiatives into their operations to reduce environmental impacts and bolster customer trust. Notwithstanding these endeavors, scant empirical research has investigated customer perceptions of green banking practices and the extent to which these initiatives affect customer attitudes toward banks. The principal objective of this study is to examine the influence of green banking initiatives (GBI), environmental awareness (EA), and service transparency (ST) on customer perception (CP) regarding green banking in Bangladesh. In this study, CP functions as the dependent variable, whereas GBI, EA, and ST are the independent variables. A structured questionnaire was administered to 320 bank customers in Dhaka, Chattogram, Gazipur, and Rajshahi. Out of 320 distributed questionnaires, 181 responses were obtained, and following data screening, 168 valid responses were utilized for analysis. Correlation and regression analyses were performed using SPSS version 26 at a 5% significance level. The findings indicate that GBI, EA, and ST have a significant and positive impact on customer perception of green banking. The paper concludes with significant implications for banks aiming to improve their sustainability image and offers guidance for future research.

Keywords: Bangladesh; sustainable finance; environmental awareness; customer perception; Green banking (search for similar items in EconPapers)
Date: 2026-03-01
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Published in European Journal of Arts, Humanities and Social Sciences, 2026, 3 (2), pp.233-243. ⟨10.59324/ejahss.2026.3(2).15⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05707847

DOI: 10.59324/ejahss.2026.3(2).15

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