IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v12y2023i4p159-168.html
   My bibliography  Save this article

Evaluation of Green Banking in Pakistan Using Framework of the Central Bank: Employing TOPSIS Approach

Author

Listed:
  • Tehmina Fiaz Qazi

    (Hailey College of Banking and Finance, University of the Punjab, Lahore, Pakistan)

  • Abdul Aziz Khan Niazi

    (Department of Management Sciences, University of Engineering and Technology, Lahore, Pakistan)

  • Madiha Saleem

    (University of Engineering and Technology, Lahore, Pakistan)

  • Abdul Basit

    (Lahore Institute of Science & Technology, Lahore, Pakistan)

  • Muhammad Umair Ahmed

    (University of Engineering and Technology, Lahore, Pakistan)

Abstract

The purpose of current research is to evaluate commercial banks’ performance regarding Green Banking (GB) practices using State Bank of Pakistan’s (SBP) framework as criteria. The study aims to rank and compare commercial banks with respect to their acceptance, adoption and implementation of green guidelines issued by SBP. The research design comprises of systematic review of literature, data extraction and analysis. Literature review consists of overview of GB practices in global banking industry as well as local industry of Pakistan. SBP has issued guidelines and required its commercial banks to transform banking practices towards green practices as a step towards sustainable green economy. The study is cross-sectional; the data collection involves content analysis of annual reports of commercial banks of Pakistan for the year 2021. Out of total forty-one banks, fourteen banks are shortlisted, using purposive sampling method, that have disclosed information about their GB practices in their annual reports. Analysis is performed using Multi-Criteria Decision Making technique (MCDM) of ‘Technique for Order Preference by Similarity to Ideal Solution’ (TOPSIS). As per findings, Habib Bank Ltd. is at the top of bank rankings, Allied Bank is at the second and Soneri Bank is at the third rank in initiating, implementing, disclosing and obtaining positive outcomes out of their green banking initiatives. The study has implications for regulators, policy makers and practitioners. It can fill the gap in literature by adding a discussion on an important topic that is being ignored by previous researchers. The regulatory institution (i.e. SBP) can learn performance of its banks on GB guidelines. The practitioners can evaluate themselves on green practices scale and learn on how to improve their practices to perform better ahead of competitors.

Suggested Citation

  • Tehmina Fiaz Qazi & Abdul Aziz Khan Niazi & Madiha Saleem & Abdul Basit & Muhammad Umair Ahmed, 2023. "Evaluation of Green Banking in Pakistan Using Framework of the Central Bank: Employing TOPSIS Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 159-168.
    • Handle: RePEc:rfh:bbejor:v:12:y:2023:i:4:p:159-168
    DOI: https://doi.org/10.61506/01.00100
    as

    Download full text from publisher

    File URL: https://bbejournal.com/BBE/article/view/594/499
    Download Restriction: no
    File URL: https://bbejournal.com/BBE/article/view/594
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.61506/01.00100?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shahid Manzoor Shah & Amjad Ali, 2022. "A Survey on Financial Inclusion: Theoretical and Empirical Literature Review," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 310-330, December.
    2. Marc Audi & Amjad Ali, 2023. "The Role of Environmental Conditions and Purchasing Power Parity in Determining Quality of Life among Big Asian Cities," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 292-305, May.
    3. Marc Audi & Amjad Ali, 2023. "Unveiling the Role of Business Freedom to Determine Environmental Degradation in Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 157-164, September.
    4. Alam Rehman & Irfan Ullah & Fakhr-e-Alam Afridi & Zain Ullah & Muhammad Zeeshan & Arif Hussain & Haseeb Ur Rahman, 2021. "Adoption of green banking practices and environmental performance in Pakistan: a demonstration of structural equation modelling," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13200-13220, September.
    5. Shahid Manzoor Shah & Amjad Ali, 2023. "Macro Dimensions of Financial Inclusion Index and its Status in Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(1), pages 1-12, March.
    6. Marion Allet, 2014. "Why Do Microfinance Institutions Go Green? An Exploratory Study," Journal of Business Ethics, Springer, vol. 122(3), pages 405-424, July.
    7. Prerana Sarma & Arup Roy, 2021. "A Scientometric analysis of literature on Green Banking (1995-March 2019)," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 11(2), pages 143-162, April.
    8. Sudipta Bose & Habib Zaman Khan & Afzalur Rashid & Shajul Islam, 2018. "What drives green banking disclosure? An institutional and corporate governance perspective," Asia Pacific Journal of Management, Springer, vol. 35(2), pages 501-527, June.
    9. Meenakshi Sharma & Akanksha Choubey, 2022. "Green banking initiatives: a qualitative study on Indian banking sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(1), pages 293-319, January.
    10. Abdul Aziz Khan Niazi & Tehmina Fiaz Qazi & Abdul Basit & Muhammad Zeeshan Shaukat, 2021. "Evaluation of Climate of Selected Sixty-six Countries using Grey Relational Analysis: Focus on Pakistan," Journal of Business and Social Review in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 7(1), pages 51-62, January.
    11. Habib Zaman Khan & Sudipta Bose & Benedict Sheehy & Ali Quazi, 2021. "Green banking disclosure, firm value and the moderating role of a contextual factor: Evidence from a distinctive regulatory setting," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3651-3670, December.
    12. Hyoungkun Park & Jong Dae Kim, 2020. "Transition towards green banking: role of financial regulators and financial institutions," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 5(1), pages 1-25, December.
    13. Abdul Aziz Khan Niazi & Tehmina Fiaz Qazi & Abdul Basit & Muhammad Zeeshan Shaukat, 2021. "Evaluation of Climate of Selected Sixty-six Countries using Grey Relational Analysis: Focus on Pakistan," Journal of Business and Social Review in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 7(1), pages 95-106, March.
    14. Shahid Manzoor Shah & Amjad Ali, 2022. "A Survey on Financial Inclusion: Theoretical and Empirical Literature Review," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 310-330, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mir, Ajaz Akbar & Bhat, Aijaz Ahmad & Al-Adwan, Ahmad Samed & Farooq, Summaira & Jamali, Dima & Malik, Irshad Ahmad, 2025. "Green banking practices and customer satisfaction-way to green sustainability," Innovation and Green Development, Elsevier, vol. 4(2).
    2. Dr. Javed Miraj & Sheraz Haider & Dr. Qaisar Abbas & Iram Naeem & Zuhaib Nishtar & Kashif Lodhi, 2023. "Assessing the Effectiveness of Financial Literacy Programs for Business Student," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 587-594.
    3. Wajeeha Aslam & Syed Tehseen Jawaid, 2023. "Systematic Review of Green Banking Adoption: Following PRISMA Protocols," IIM Kozhikode Society & Management Review, , vol. 12(2), pages 213-233, July.
    4. Sadia Naseem Naik & Dr. Aribah Aslam, 2024. "The Impact of Financial Inclusion on the Association between Government Cash Transfers and Violence Against Women," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 61-69.
    5. Audi, Marc & Poulin, Marc & Ali, Amjad, 2023. "Determinants of Human Wellbeing and its Prospect Under the Role of Financial Inclusion in South Asian Countries," MPRA Paper 120119, University Library of Munich, Germany.
    6. Waqar Muhammad Khan & Moniba Sana & Safia Mansab, 2023. "Contributing Features that Alter Purchasing Behaviour of Cash and Carry Customers in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 722-737.
    7. Dr. Muhammad Shakeel & Kifayatullah Khan & Dr. Arfan Latif, 2023. "Role of Finnacial Inclusion, Institutional Quality and Human Capital in Economic Growth: An Empirical Analysis from Selected Asian Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 274-278.
    8. Wajeeha Aslam & Syed Tehseen Jawaid, 2025. "Green banking adoption practices: the pathway of meeting sustainable goals," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(1), pages 1015-1040, January.
    9. Muhammad Waleed Khalid & Aqueel Imtiaz Wahga & Muhammad Gulzaib Chaudhary & Safyan Majid & Muhammad Awais, 2023. "Impact of Financial Literacy on Access to Finance and Firm Performance: An Analysis of Growing Industry Cluster in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 45-53.
    10. Abdul Aziz Khan Niazi & Tehmina Fiaz Qazi & Hira Tanweer Butt & Ifra Aziz Khan Niazi & Abdul Basit, 2023. "A Structural Analysis of Barriers Being Faced by Green Banking Initiatives in Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 182-199.
    11. Rahman Aulia Fuad & Agusti Rosalita Rachma & Kurniawati Desi Tri, 2024. "Mediating Role of Sustainability Reporting Quality on the Relationship Between Green Banking and Firm Value," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(4), pages 105-129.
    12. Ambereen Kanwal & Muhammad Zubair Saeed & Zujaj Ahmed & Kainat Fatima & Muhammad Ali Hameed, 2023. "Composite Islamic Finance Index: A performance base measure of Islamic Financial Sector of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 108-118.
    13. Asad Abbas & Mamoona Sayyeda Gul Zarrin, 2023. "Brain Drain and Economic Growth: An ARDL Analysis," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(1), pages 528-537.
    14. Shahid Manzoor Shah & Amjad Ali, 2023. "Macro Dimensions of Financial Inclusion Index and its Status in Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(1), pages 1-12, March.
    15. Sa Nguyen Tran & Dao Thi Thieu Ha, 2025. "Green banking disclosure: A bibliometric analysis," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 15(1), pages 20-37.
    16. Md. Nur-E-Alam Siddique & Shifa Mohd Nor & Zizah Che Senik & Nor Asiah Omar, 2023. "Corporate Social Responsibility as the Pathway to Sustainable Banking: A Systematic Literature Review," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    17. Nikola Milicevic & Nenad Djokic & Vera Mirovic & Ines Djokic & Branimir Kalas, 2022. "Banking Support for Energy Security: The Customer Aspect," Sustainability, MDPI, vol. 15(1), pages 1-15, December.
    18. Uzma Ghafoor & Muhammad Ramzan Sheikh & Afsheen Baqir, 2023. "Green Growth, Environmental Quality, Energy Consumption Nexus in OECD Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 409-418.
    19. Habib Zaman Khan & Muhammad Nurul Houqe & Ielemia K Ielemia, 2023. "Organic versus cosmetic efforts of the quality of carbon reporting by top New Zealand firms. Does market reward or penalise?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 686-703, January.
    20. Saima Ashiq & Amjad Ali & Hafiz Muhammad Abubakar Siddique & Sumaira, 2023. "Impact Of Innovation On Co2 Emissions In South Asian Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 201-211.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:12:y:2023:i:4:p:159-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.