GREEN BANKING PRACTICES AND PERCEIVED FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KATHMANDU METROPOLITAN CITY

Abstract

Climate change is one of the most significant and complicated issues facing modern society. People are becoming more conscious of global warming and its significant effects on human existence. It is now a worry for a number of stakeholders, including governments and direct polluters as well as financial organizations like banks that are essential to the advancement of society. Even if banking activities don't directly harm the environment physically, their customers' actions have a big influence on it. In an effort to significantly lesser their carbon footprint, banks are progressively incorporating green ideas into their construction, operations, and financing methodologies. The use of eco-friendly goods and services, such as online and mobile banking, ATM transactions, green deposits, mortgages, and loans, is one example of these practices. This quest is further aided by specific initiatives like the adoption of solar and wind energy, energy efficiency, mass transit, and paperless banking. The current study is to investigate the benefits of green banking and assess consumer and bank employee understanding and attitudes of green banking practices in the Kathmandu Metropolitan Area. To measure awareness and perception, 400 workers from commercial banks in Kathmandu were chosen as the sample size for this inquiry. While secondary data is gathered from a variety of literary sources, including books and journals, primary data is gathered through surveys. To achieve the goals of the study, a descriptive research design is used, and inferential analysis is carried out utilizing statistical methods such as regression analysis and correlation in SPSS to investigate the relationship between variables. The study's main goal is to examine how various elements interact with one another. The results point to a substantial correlation between the independent and dependent variables. It turns out, though, that bank clients are not entirely aware of the green banking options and services that are accessible to them. On the other hand, most bank staff members have a high degree of familiarity with Green Banking offerings. Moreover, a major obstacle to the uptake of green banking services is customer anxiety about the security of these services and possible exploitation of personal data.