Green Banking: A Conceptual Study on its Definition, Complexities, and Opportunities in Pakistan
Fakhre Alam , Zain Ullah , Shah Khalid , Waheed Khattak
Banks directly generating environmental pollution during their banking operations and banks are the main source for funding of such businesses and projects that can pollute the environment. The purpose of this study is to analyze the bankers’ perceptions on different aspects of Green Banking in Pakistan, it includes the concept of Green Banking, its benefits, complexities, relationship with the Islamic banking, strategies, problems facing in Green Banking Guidelines issued by SBP in 2017, opportunities and suggestions for implementation. The main objective of the banks is to maximize the profit of the banks but the role and approach of GB are different. This study used interpretive research philosophy, inductive research approach, and exploratory research strategy, qualitative research choice, and cross-sectional as time horizon. Primary data have been collected and used for analysis. All bank managers in the Peshawar division taken as population and 14interviews of respondents of the executive level bankers were taken as sample size. Face to face interviews through open-ended questions was conducted. Data analysis was carried out by designing and showing responses to the MS excel table. For each question, data is coded and descriptive analysis techniques i.e. percentage is used for the processing of collected data. The outcomes of the study revealed that bankers perceived that Green Banking is environment-friendly banking which can help in the protection of the environment even with high adoption costs and other related complexities. Green Banking will reduce resource wastages to raise profit and can easily access. The major complexity of Green Banking is the lack of awareness and education.
Key Words: Green Banking, Opportunities and Challenges, Qualitative Content Analysis (QCA)