Banking on sustainability: the impact of green credit on financial performance in ASEAN banks
摘要
This study examines the impact of green credit on the financial performance of banks in ASEAN from 2019 to 2023. It highlights the importance of green finance in addressing climate change and promoting sustainability within the banking industry. Data from listed banks were analysed using STATA 18, employing various econometric methods, including the Generalised Method of Moments (GMM), Ordinary Least Squares (OLS), Fixed Effects Model (FEM), and Random Effects Model (REM). The study investigates the influence of the green credit ratio and disclosure practices on financial outcomes. The analysis reveals that both the green credit ratio and disclosure have a positive, albeit limited, impact on financial performance. In contrast, neither bank size nor the capital adequacy ratio showed a significant effect. This research provides empirical evidence on the role of green credit in improving financial performance, addressing a gap in the existing literature on green finance in the ASEAN region. The findings offer practical recommendations for ASEAN banks to develop and implement effective green credit policies as part of their broader sustainability strategies, contributing to climate change mitigation and sustainable development across the region.