THE IMPACT OF GREEN FINANCING ON BANKS’ REPUTATION

Authors

DOI:

https://doi.org/10.5281/zenodo.16990626

Keywords:

green finance, banks’ reputation, green bonds, green loans, sustainability.

Abstract

Green financing has emerged as a crucial mechanism through which banks align their operations with sustainable development priorities. This paper examines the relationship between green financing-mainly through green loans and green bonds-and banks’ reputational capital. Using a qualitative review of recent industry reports, case studies, and empirical evidence from global and regional contexts, the study finds that green financing significantly enhances banks’ reputations, fosters public trust, and strengthens stakeholder relations. The results suggest that banks that prioritize sustainability in their financing portfolios are perceived as more socially responsible and competitive in global markets.

References

1. Weber, O., & ElAlfy, A. (2020). Green finance and sustainability: A case study of a bank’s strategy. 10(2), 213–228. https://doi.org/10.1080/20430795.2020.1724864

2. World Bank. (2020). State and Trends of Carbon Pricing 2020. Washington, DC: World Bank Group. Retrieved from https://www.worldbank.org

3. UNEP. (2016). Guide to Banking and Sustainability. United Nations Environment Programme Finance Initiative. Retrieved from https://www.unepfi.org

4. Goss, A., & Roberts, G. S. (2011). The impact of corporate social responsibility on the cost of bank loans. Journal of Banking & Finance, 35(7), 1794–1810. https://doi.org/10.1016/j.jbankfin.2010.12.002

5. Computed by the author using panel regression analysis of commercial bank data for 2017–2024.

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Published

2025-08-25