Factors determining the adoption of green banking amongst commercial banks in Malaysia

Green banking, often referred to as ethical banking, involves integrating social and environmental factors into banking operations to ensure resources are used in favor of the environment and society. This research investigates the factors influencing the adoption of green banking within commercial banks in Malaysia. The study specifically examines variables such as environmental interest, stakeholder pressure, policy guidelines, economic factors, and loan demand. The results indicate that all these predicted factors are statistically significant in driving the adoption of green banking, highlighting the shift toward sustainable economic development and environmental risk management in the Malaysian financial sector.