Factors affecting the application of green banking in Vietnamese commercial banks

Abstract

Banking sector has a special intermediary role, expressed through financial support for various
industries in the economy. Therefore, if combining green standards with its lending decisions, the commercial
banks system not only promotes economic development but also helps build a cleaner and greener world. The
objective of this study is to find out the possible factors that motivate a bank to apply green banking activities.
The author conducted a survey of 500 employees of 31 Vietnamese commercial banks from August to October
2018. By using EFA exploratory factor analysis and regression model, the results showed 4 factors including:
pressure from stakeholders, economic benefits, environmental concerns, policy and legal factors that have a
major impact on the application of green banking in Vietnamese commercial banks. From the research results,
the author made some recommendations to improve the willingness to implement green banking activities of
Vietnamese commercial banks