Green Banking and Sustainable Performance in Developing Economy: Exploring the Mediating Role of Green Brand Image and Green Banking Policy with the Moderating Effect of Green CSR

Purpose: This study aims to investigate the impact of Green CSR (GCSR) on bank employees and on the banks’ sustainable performance (BSP). The objective of this paper is to investigate the association of Green banking (GB) practices with Green brand image (GBI) and Green banks policy (GBP) by the State-owned commercial banks (SOCBs) and Islamic commercial banks (ICBs) in the context of Bangladesh, a developing economy in South Asia. Methodology: The research was conducted on 420 employees who worked in SOCBs and Islamic banks in Bangladesh. Structural equation modeling (SEM) was used to analyze relationships among the variables. Findings: Results show that GB practices significantly and positively influence banking sector GBI as well as GBP development. Furthermore, GBI and GBP of banks contribute to improving sustainable performance (SP). The findings indicate that GB’s operational, staff, and environmentally based CSR practices have a significant influence on BSP. Originality/Value: This paper deserves attention because it is one of the first papers to address multiple GB practices and their impact on GBI and GBP. This paper is the first to examine the long-run sustainability of the Bangladeshi ICB and SOCB, the impact of GBI and GBP. Implications: The study contributes significantly in understanding the factors that enhance the effects of GB practices on sustainable banks and the advocacy of sustainable banking and GB practices.