Bank performance relation with green banking practices: A study on commercial bank in Bangladesh

This study investigates the relationship between green banking practices and financialperformance in Bangladesh's commercial banking sector. Using data from eight commercialbanks listed on the Dhaka Stock Exchange (DSE) over the period 2014–2023, the study employsthe Augmented Mean Group (AMG) methodology in STATA-17. Green Finance serves as thedependent variable, while Return on Assets (ROA), Market Value of Shares (MV), Return onEquity (ROE), Operating Cost Ratio (OCR), and Bank Size are the independent variables. Thefindings reveal a significant correlation between green finance and financial performance, withROE and OCR positively influencing green finance, while MV and ROA show negativecorrelations. The study underscores the need for proactive green banking policies to drivesustainable financial growth and recommends that financial institutions and regulatorsstrengthen green finance initiatives to enhance economic and environmental sustainability.