GREEN FINANCE IN BANK AND FINANCIAL INSTITUTIONS (BFIs)

Abstract

The study investigates the impact of Green Finance on BFIs specifically focusing on green investment, risk management, green human resource practices, green products and services, and green business strategy. The research utilizes a descriptive and exploratory design, employing primary data collected through questionnaires from employees of six selected commercial banks in Kathmandu Valley. The sample includes employees from both officer and assistant levels, ensuring a diverse range of perspectives. The research addresses a significant gap in the literature by analyzing green banking practices' impact on financial performance, an area previously underexplored in the context of Nepalese banks. The major findings indicate a strong positive correlation between green banking practices and banking efficiency, effectiveness, and economic performance. Green products and services, along with green business strategies, emerged as the most influential factors enhancing economic performance. The study highlights the high engagement of strategic decision makers in green banking discussions, the diverse gender representation, and the predominant influence of younger, well educated employees on green banking initiatives. Recommendations for future research include conducting longitudinal studies to track the evolution of green banking practices, comparative analyses across different regions, and deeper investigations into customer perceptions and behaviors towards green banking products. Enhancing regulatory support and improving customer awareness are crucial for advancing sustainable banking practices in Nepal.