The Impact of Green Credit, Green CSR, and Digital Financial Inclusion on Profitability in ASEAN Banks

Herlina Herlina; Farah Margaretha Leon; Henny Setyo Lestari

doi:10.54443/sj.v4i3.506

Authors

Herlina Universitas Bunda Mulia, Indonesia
Farah Margaretha Leon Universitas Trisakti, Indonesia
Henny Setyo Lestari Universitas Trisakti, Indonesia

DOI:

https://doi.org/10.54443/sj.v4i3.506

Keywords:

Green Credit, Green CSR, Digital Financial Inclusion, Profitability

Abstract

This study aims to (1) examine the positive effect of green credit on bank performance; (2) examine the positive effect of green corporate social responsibility (green CSR) on bank performance; (3) examine the negative effect of digital financial inclusion on bank performance. This is a quantitative study analyzed using EViews software. The data used is secondary data obtained from sustainability financial reports. The sampling technique employed is purposive random sampling, with a total sample of 24 banks in the ASEAN region. The study uses panel data covering the period from 2019 to 2022. The findings of this study indicate that (1) Green credit has a significant positive effect on profitability; (2) Green CSR does not have a significant effect on profitability; (3) Digital financial inclusion (DFI) does not have a negative effect on profitability but instead has a positive influence on profitability. The findings suggest that green credit initially has a positive influence on bank performance, indicating that it has the potential to enhance bank profitability when strategically implemented to support sustainable activities.

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