Underpinning the benefits of green banking: A comparative study between Islamic and conventional banks in Bangladesh

Kashfia Sharmeen, Rashedul Hasan, Mohammad Dulal Miah

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)


This study aims to compare environmental motives and performance of conventional and Islamic banks in Bangladesh. Green compliance index was developed based on the Bangladesh Bank (the central bank of Bangladesh) guidelines whereas information regarding governance variables is collected from the annual reports of 9 Islamic and 31 conventional banks. Results show Islamic banks are more environmentally friendly compared to their conventional counterparts. Board size is negatively related to green compliance whereas board independence and auditor's type do not have any significant influence on green compliance for both clusters of banks. Compliance with green banking policies enhances the reputation for Islamic banks and accountability and profitability for conventional banks. Results of this study provide useful information for regulatory authorities to formulate policies that are conducive to enhance bank's environmental performance.

Original languageEnglish
Pages (from-to)735-744
Number of pages10
JournalThunderbird International Business Review
Issue number5
Publication statusPublished - 9 Oct 2018
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2018 Wiley Periodicals, Inc.


  • carbon emission
  • corporate social responsibility
  • environmental performance
  • governance
  • green banking

ASJC Scopus subject areas

  • Business and International Management
  • Geography, Planning and Development
  • Political Science and International Relations


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