Ahsan Mahbub Yeaman

Bio: Ahsan Mahbub Yeaman is an academic researcher. The author has an hindex of 1, co-authored 1 publications receiving 2 citations.

Benefits that islamic and conventional banks can attain by implementing green banking

Abstract: This paper aims to ascertain the benefits that Islamic and conventional banks in Bangladesh can reap by implementing green banking, and also the drivers that motivate banks to behave environmentally. The Green Compliance Index (GCI) was introduced here to measure banks’ environmental behaviour. It was prepared based on central bank guidelines. In this study, with the participation of all 40 private commercial banks (PCBs), 32 conventional banks and 8 Islami Shariah-based PCBs, firm specific variables were collected through content analysis of the GCI. Structural equation modellingpartial least squares (SEM-PLS), together with the bootstrapping method, were used to evaluate the research data. These were collected and sorted from the FY annual report of 2018. For further support, a Generalized Linear Model (GLM) was used to assess the outcomes. The results show that the effects of green compliance on possible benefits are significantly higher for Islamic banks. In contrast, these banks comply less with the green banking codes than conventional banks do in Bangladesh. Company size and the independence of bank directors appear to have a significant influence on compliance with the green banking codes, while governance does not show such an association for either group of banks. As Islamic banks have a greater scope to attain benefits, policymakers should introduce more interactive green banking products and loan schemes for prospective consumers, especially in industrial sectors where there is a greater possibility of being sustainable and environmentally friendly. Based on the findings, policy recommendations are made for practitioners, regulators and future researchers.

Green-Banking Practices in Bangladesh-A Scope to Make Banking Green

Abstract: In Bangladesh, it is not blamed to pollute environment compare with other countries. Amount of CO2 emission is also very low comparing with other countries. But we are the victims of this CO2 emission or environmental pollution. So, to survive ourselves we should incorporate this green banking for the sake of our people. As early as possible the banking community should commence its activities. Government should take necessary steps to enforce existing environmental regulations and formulate appropriate rules to ensure ―Pollute Pays Principle‖ in the country. The Central bank of Bangladesh can play a pro-active role in formulating a national level ―Green Credit Policy‖ and creating a sound incentive structure for performing ER practices by banks. Much more is expected from the civil society organizations in the form of awareness development, research activities and business monitoring. ‗Consumer Awareness‘ is the area where Bangladesh needs remarkable change, because green banking is largely driven by consumer behavior and consumption patterns. For rapid change among consumers and business, a collective endeavor of government, media, NGOs, and banks will be required. An isolated effort by banking communities may not bring much. The success of the proposed framework would depend upon the pro-active role of all stakeholders and a sound incentive structure.

Green banking practices, bank reputation, and environmental awareness: evidence from Islamic banks in a developing economy

Abstract: Fulfilling the international considerations of environment, societal, and governance challenges, the financial industry, especially banks, has initiated “Go Green” practices to help sustain the environment and enhance “banking” across the globe. Amidst the green and climate-friendly drives, there is scarce literature highlighting the banks’ green practices, environmental awareness, and their effects on bank reputation, especially the reputation of Islamic banks. This study aims to investigate the green banking practices of Islamic banks in a developing Islamic country. Focusing on the greening ambitions of banks, this study argues that the reputation of Islamic banks can be better enhanced through adopting green banking initiatives that will beget better climatic outcomes in Muslim societies. Therefore, the study illumes green banking practices and their impact on the reputation of Islamic banks in Pakistan. Moreover, this study checks the moderation effect of employees’ environmental awareness on banks' reputation. The study used deductive rationale and quantified the employees' data to unravel their go-green perceptions and bank green activities. In this regard, the 390 response data, collected through a survey from the employees of Islamic banks, were analyzed through Smart-PLS, using structural equation modeling technique. The study finds that banks’ employees-related practices (ERPs), daily operations-related practices (DORPs), customers-related practices (CRPs), and banks’ policy-related practices (PRPs) have a significant positive influence on bank reputation. The authors also find that there is a significant moderating impact of environmental awareness between the relationships of ERPs, DORPs, CRPs, PRPs, and bank reputation. The study might increase understating and enlighten regulators and bank management to sustainably transform their operations to green banking practices, particularly adding to the environmental sustainability in Pakistan.