How To Create Sustainable Bank Performance? The Influence of Green Banking on Sustainable Bank Performance Through Green Finance

Shadrina Hazmi; Rina Dwiarti; Eno Casmi; Seflidiana Roza

doi:10.47134/jampk.v3i2.1027

Authors

Shadrina Hazmi Universitas Mercu Buana Yogyakarta
Rina Dwiarti Universitas Mercu Buana Yogyakarta
Eno Casmi Universitas Mercu Buana Yogyakarta
Seflidiana Roza Universitas Mercu Buana Yogyakarta

DOI:

https://doi.org/10.47134/jampk.v3i2.1027

Keywords:

Banking, Green Banking, Green Finance, Sustainable Bank Performance

Abstract

This study aims to examine the effect of green banking on sustainable bank performance and to assess the mediating role of green finance in strengthening sustainability outcomes. Using a quantitative research design, the study applies Partial Least Squares–Structural Equation Modeling (PLS-SEM) to analyze the relationships among the variables. Data were collected through a structured survey and subsequently processed to evaluate the direct influence of green banking on sustainable bank performance as well as the indirect effect through green finance. The findings indicate that green banking has a significant positive effect on sustainable bank performance, while green finance plays a mediating role in this relationship. This study provides original empirical evidence demonstrating that the integration of green banking practices with green finance mechanisms can effectively enhance sustainability performance, thereby contributing valuable insights to the development of sustainable financial management.

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