The Determinants of Green Banking Adoption in Bangladesh: An Environmental Perspective

Abstract

Purpose: The aim of this paper is to assess the environmental factors’ influence on the green banking adoption in Bangladesh.
Design/methodology/approach: This study is an empirical attempt to prove the cause and effect relationship for the hypotheses developed from a conceptual framework for which it has used both descriptive, as well as quantitative research. The survey unit of the analysis administered a simple random sampling technique over 323 respondents by using a structured questionnaire.
Findings: The study identified that the customer pressure, the competitor pressure and the community pressure are the salient environmental factors which have a positive influence on green banking adoption in Bangladesh.
Practical implications: The study may have significant implications providing the bank management with better understanding of the environmental factors and also the influence of it to find out appropriate strategies required to green banking practice.
Research limitations: The research is mostly based on primary data focused only the customers of commercial banks as respondents ignoring managerial samples across the banks.
Originality/value: To the best of the author’s knowledge, this study is one of the earliest initiatives to explore the environmental factors and its influence behind the adoption of green banking practices in Bangladesh.