The impact of green banking on perceived banking performance through green finance in Indonesian banking
Keywords:
green banking, green finance, mediation, perceived banking performance, PLS-SEMAbstract
The banking industry plays a strategic role in supporting sustainable development through the implementation of green banking and green finance principles. However, the extent to which these aspects contribute to banking performance in Indonesia still requires in-depth empirical investigation. This study aims to analyze the effect of green banking on perceived banking performance with green finance as a mediating variable in the Indonesian banking sector. This research employs a quantitative approach with an explanatory research design. The sample consists of 104 banking employees working in banks that have implemented green banking principles in East Java, namely Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Central Asia (BCA), Bank Syariah Indonesia (BSI), and Bank Muamalat, selected through a purposive sampling technique. Data were collected through questionnaires using a 5-point Likert scale and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4 software. The results indicate that: (1) green banking has a significant effect on perceived banking performance; (2) green banking has a significant effect on green finance; (3) green finance has a significant effect on perceived banking performance; and (4) green finance significantly mediates the effect of green banking on perceived banking performance, categorized as partial mediation. These findings confirm that green finance serves as a crucial transmission mechanism linking green banking commitment to superior perceived banking performance. The implications of this study provide strategic insights for bank management in optimizing sustainable financial products and for regulators in strengthening green finance policies in Indonesia.
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Copyright (c) 2026 Intan Putri Amelia, Mi'rojul Azkiyyah, Bambang Widagdo, Chalimatuz Sa'diyah (Author)
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