Reimagining the Financial Ecosystem: A Conceptual Perspective on Green Banking and Sustainable Development

Abstract

Purpose: The change in banking institutions in terms of climate change, ESG, and restructuring of the financial environment can be termed a paradigm shift in the context of financial intermediation. This study attempts to conceptualise green banking in terms of the transformation of financial governance in a unified three-dimensional prototype.
Methodology: This research will be conducted using an integrative literature synthesis method in which the concept of green banking will be integrated with the financial environment of the Reserve Bank of India, Securities and Exchange Board of India, UNEP Finance Initiative, and Network for Greening the Financial System.
Findings: This research will attempt to conceptualise green banking in terms of an integrative three-dimensional model, which is essential for enhancing the stability of financial institutions.
Conclusion: The research concluded that green banking is not just a transformation of banking institutions but a transformation of the field of financial governance. This transformation in terms of sustainability is essential for enhancing the stability of financial institutions.
Future Research Directions: Research has suggested that the proposed model of green banking can be utilised for creating a composite index of green banking, panel regression on the relationship between sustainability and profitability, and climate stress tests for testing the model.