Open Access
Article
SciPap-1681
The Impact of Green Banking Activities on Banks’ Green Financing and Environmental Performance
by
Daniel Cardona Valencia 1,* 
and Carola Calabuig Tormo 2
1 Finance, Universidad de Antioquia - Universitat Politècnica de València, Camí de Vera, s/n, 46022 València, Valencia 46020, Spain
2 INGENIO (CSIC-Universitat Politècnica de València), Universitat Politècnica de València, Camí de Vera, s/n, VALÈNCIA 46022, Spain
* Authors to whom correspondence should be addressed.
Abstract: This study aims to empirically assess the impact of green banking activities on banks' green financing and environmental performance. Likewise, it seeks to identify the mediating effect of green financing on the relationship between banks’ environmental performance and green banking activities. It also examines the trends and challenges on the topic. Structural equation modeling was used to evaluate the relationship between the variables identified from primary data collected through a structured questionnaire administered to 321 Colombian bankers, who were selected using convenience sampling. According to the results, green banking activities have a positive impact on banks’ environmental performance, and banks' sources of green financing significantly influence their environmental performance. Notwithstanding, green banking is regarded as a promising strategy for banks because it enhances their competitiveness and reputation, helps them reduce their carbon footprint and costs in the long term, and enables them to be included in sustainability indexes.
Keywords: Sustainability, Environmental Performance, Green Banking, Financial Inclusion, Green Finance, Green Financing
JEL classification: A1 - General Economics, F64 - Environment
Received: 26 April 2023 / Revised: 4 July 2023 / Accepted: 26 July 2023 / Published: 8 September 2023
