This paper explores the evolution of green banking regulations globally and their impact on financial markets. Green banking refers to environmentally sustainable financial practices aimed at mitigating climate-related risks. The study examines the historical progression of green banking regulations, key policy frameworks, and their influence on investment trends, market risk, and financial stability. The paper also highlights challenges in regulatory implementation and suggests policy recommendations for fostering a sustainable financial ecosystem. The findings reveal that while green banking regulations have significantly promoted sustainable finance, disparities in regulatory frameworks and compliance enforcement continue to hinder global market harmonization.