The Impact of Green Banking Financing Initiatives on the Financial Performance of Islamic Banks: A Case Study in Indonesia. Mohamad Andri Ibrahim, Yayat Rahmat Hidayat and Zaini Abdul Malik
Department Islamic Economic of Universitas Airlangga, Program Study Islamic Banking of Universitas Islam Bandung
Abstract
This research aims to evaluate the impact of green banking initiatives on the financial performance of Islamic banks in Indonesia. Green banking is a banking concept that adopts environmentally friendly principles in financial practices to promote environmental and economic sustainability. In the context of Islamic banking, the implementation of green banking includes financing environmentally friendly projects, applying sustainable internal policies, and promoting financial products that support environmental preservation. This research uses a case study method by taking samples from several leading Islamic banks in Indonesia that have implemented green banking initiatives. Data was collected through interviews, questionnaires, and analysis of financial reports over a specific period. Data analysis was conducted using descriptive and inferential statistical methods to evaluate the impact of green banking on financial performance, measured through various indicators such as Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin. (NPM).
