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A Structural Analysis of Barriers Being Faced by Green Banking Initiatives in Pakistan

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  • Abdul Aziz Khan Niazi

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

  • Tehmina Fiaz Qazi

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

  • Hira Tanweer Butt

    (Institute of Business and Management, University of Engineering and Technology, Lahore, Pakistan)

  • Ifra Aziz Khan Niazi

    (Faculty of Management Studies, UCP Business School, University of Central Punjab, Lahore, Pakistan)

  • Abdul Basit

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

Abstract

The aim of this study is to investigate the barriers to green banking in Pakistan. For this purpose, the research is conducted within the panel of 15 experts. It is a qualitative research, with philosophy of interpretivism and it is an exploratory study. For analysis purpose, ISM and MICMAC are used in this study. It consists of literature discourse, collection of data and analysis. This study is conducted after identification and verification of the barriers to green banking in Pakistan. for the purpose of data collection, a panel of experts have been selected. The data have been collected on a matrix type questionnaire from different stakeholders of green banking. Interpretive structural modeling (ISM) and MICMAC are used for structural analysis. Thirty barriers of green banking in Pakistan have been identified from literature, out of which 27 factors are verified by the experts. The results revel that "lack of internal capacity" is the key barrier as it is present at the last level of structural model. "Lack of technology" and "lack of formal guidelines" are also considered as crucial barriers as they are present at the bottom of the model. Thirteen barriers are at the center levels and considered as moderately severe while eleven barriers are at top level that means they have a less severe effect. The results of MICMAC also go along the results of ISM. It is an original attempt to provide a detail view on barriers of green banking that can help government, regulators, society, policy makers and academia. This study will have a great implication for its stakeholders such as banks, regulators, customers etc. It will have theoretical as well as practical implications.

Suggested Citation

  • 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.
    • Handle: RePEc:rfh:jprjor:v:9:y:2023:i:2:p:182-199
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    References listed on IDEAS

    as
    1. Chen Zhixia & Md. Miraj Hossen & Sayed Sami Muzafary & Mareum Begum, 2018. "Green Banking for Environmental Sustainability-Present Status and Future Agenda: Experience from Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(5), pages 571-585, June.
    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. Amjad Ali & Marc Audi & Ismail Senturk & Yannick Roussel, 2022. "Do Sectoral Growth Promote CO2 Emissions in Pakistan? Time Series Analysis in Presence of Structural Break," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 410-425, March.
    4. Fatema Khairunnessa & Diego A. Vazquez-Brust & Natalia Yakovleva, 2021. "A Review of the Recent Developments of Green Banking in Bangladesh," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    5. Syed Asim Ali Bukhari & Fathyah Hashim & Azlan Amran, 2020. "The Journey of Pakistan’s Banking Industry Towards Green Banking Adoption," South Asian Journal of Business and Management Cases, , vol. 9(2), pages 208-218, August.
    6. 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.
    7. Junmei Qi & Elisabeth Paulet & Edina Eberhardt-Toth, 2021. "Chinese bank managers’ perceptions of barriers to the implementation of green credit in corporate loan decision-making," Post-Communist Economies, Taylor & Francis Journals, vol. 33(7), pages 920-936, October.
    8. 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.
    9. Chen Zhixia & Md. Miraj Hossen & Sayed Sami Muzafary & Mareum Begum, 2018. "Green Banking for Environmental Sustainability-Present Status and Future Agenda: Experience from Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(5), pages 571-585.
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