Determinants of Green Credit and Their Influence on Banking Profitability in Indonesia
Green finance involves efforts to internalize environmental externalities and adjust risk perceptions to encourage environmentally friendly investments and reduce those that are harmful to the environment. One form of green financial support is the provision of green credit by banks. This research a...
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| Формат: | UMS Journal (OJS) |
| Язык: | eng |
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Universitas Muhammadiyah Surakarta
2023
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| Online-ссылка: | https://journals2.ums.ac.id/index.php/reaksi/article/view/3906 |
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| _version_ | 1805342501462081536 |
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| author | Sutrisno Furqan, Ahmad Maslahatul |
| author_facet | Sutrisno Furqan, Ahmad Maslahatul |
| author_sort | Sutrisno |
| collection | OJS |
| description | Green finance involves efforts to internalize environmental externalities and adjust risk perceptions to encourage environmentally friendly investments and reduce those that are harmful to the environment. One form of green financial support is the provision of green credit by banks. This research aims to test the effect of green credit on bank profitability, and test the effect of capital adequacy, operational efficiency, credit risk and bank size on bank profitability. This research also examines the influence of capital adequacy, operational efficiency, credit risk and bank size on green credit. The population in this study are banks operating in Indonesia with a sample of all banks that have a commitment to green credit. To test the hypothesis, use panel data regression analysis. After conducting a model test, the best model was obtained, namely the fixed effect model. The results of research using the fixed effect model show that green credit in Indonesia is not influenced by bank capital adequacy, bank operational efficiency, bank liquidity, bank credit risk, and bank size. However, green credit has a significant positive effect on bank profitability in Indonesia. Another result is capital adequacy, which has a positive effect on profitability, while operational efficiency and bank size have a significant and negative effect on profitability, while credit risk has no effect on profitability. |
| format | UMS Journal (OJS) |
| id | oai:ojs2.journals2.ums.ac.id:article-3906 |
| institution | Universitas Muhammadiyah Surakarta |
| language | eng |
| publishDate | 2023 |
| publisher | Universitas Muhammadiyah Surakarta |
| record_format | ojs |
| spelling | oai:ojs2.journals2.ums.ac.id:article-3906 Determinants of Green Credit and Their Influence on Banking Profitability in Indonesia Sutrisno Furqan, Ahmad Maslahatul Green credit, profitability, capital adequacy, credit risk, operating efficiency, bank size Green finance involves efforts to internalize environmental externalities and adjust risk perceptions to encourage environmentally friendly investments and reduce those that are harmful to the environment. One form of green financial support is the provision of green credit by banks. This research aims to test the effect of green credit on bank profitability, and test the effect of capital adequacy, operational efficiency, credit risk and bank size on bank profitability. This research also examines the influence of capital adequacy, operational efficiency, credit risk and bank size on green credit. The population in this study are banks operating in Indonesia with a sample of all banks that have a commitment to green credit. To test the hypothesis, use panel data regression analysis. After conducting a model test, the best model was obtained, namely the fixed effect model. The results of research using the fixed effect model show that green credit in Indonesia is not influenced by bank capital adequacy, bank operational efficiency, bank liquidity, bank credit risk, and bank size. However, green credit has a significant positive effect on bank profitability in Indonesia. Another result is capital adequacy, which has a positive effect on profitability, while operational efficiency and bank size have a significant and negative effect on profitability, while credit risk has no effect on profitability. Universitas Muhammadiyah Surakarta 2023-05-15 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article application/pdf https://journals2.ums.ac.id/index.php/reaksi/article/view/3906 Riset Akuntansi dan Keuangan Indonesia; Vol. 9 No. 1 (2024): Riset Akuntansi dan Keuangan Indonesia; 35-49 2541-6111 1411-6510 eng https://journals2.ums.ac.id/index.php/reaksi/article/view/3906/1397 Copyright (c) 2024 Riset Akuntansi dan Keuangan Indonesia https://creativecommons.org/licenses/by-nc-sa/4.0 |
| spellingShingle | Green credit, profitability, capital adequacy, credit risk, operating efficiency, bank size Sutrisno Furqan, Ahmad Maslahatul Determinants of Green Credit and Their Influence on Banking Profitability in Indonesia |
| title | Determinants of Green Credit and Their Influence on Banking Profitability in Indonesia |
| title_full | Determinants of Green Credit and Their Influence on Banking Profitability in Indonesia |
| title_fullStr | Determinants of Green Credit and Their Influence on Banking Profitability in Indonesia |
| title_full_unstemmed | Determinants of Green Credit and Their Influence on Banking Profitability in Indonesia |
| title_short | Determinants of Green Credit and Their Influence on Banking Profitability in Indonesia |
| title_sort | determinants of green credit and their influence on banking profitability in indonesia |
| topic | Green credit, profitability, capital adequacy, credit risk, operating efficiency, bank size |
| topic_facet | Green credit, profitability, capital adequacy, credit risk, operating efficiency, bank size |
| url | https://journals2.ums.ac.id/index.php/reaksi/article/view/3906 |
| work_keys_str_mv | AT sutrisno determinantsofgreencreditandtheirinfluenceonbankingprofitabilityinindonesia AT furqanahmadmaslahatul determinantsofgreencreditandtheirinfluenceonbankingprofitabilityinindonesia |