Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Insights into Green Reputation, Fintech and Bank Performance: The Moderating Role of Green Finance in South Asia

Muhammad Waris, Nurhafiza Abdul Kader Malim

http://dx.doi.org/10.6007/IJARAFMS/v16-i2/28036

Open access

The emergence of green finance and green financial technology has revolutionized the role of the banking sector in South Asian countries. This conceptual paper proposes a comprehensive framework to investigate how green finance, green reputation, and green financial technology affect the banks’ performance. The financial performance of banks is crucial to the country's sustainability, financial stability, and economic growth. This paper highlights the roles of green finance, green reputation and financial technology in environmental protection and the financial performance of the banking sector. Green finance links the global finance and business with eco-friendly behavior. The novelty of this paper lies in the proposed conceptual framework comprising three external factors and the interaction term between green finance and green reputation, which influence the performance of banks in South Asian countries. By integrating stakeholder theory and the natural resources-based view, this conceptual paper systematically explains how these external factors improve banks’ performance. This conceptual paper aims to fill gaps in green financing and financial technology, particularly in the banking sectors of developing countries in South Asia, offering theoretical insights and practical implications for governing bodies, bank managers, policymakers, and academic researchers.

Aboalsamh, H. M., Khrais, L. T., & Albahussain, S. A. (2023). Pioneering Perception of Green Fintech in Promoting Sustainable Digital Services Application within Smart Cities. Sustainability (Switzerland), 15(14), 1–13. https://doi.org/10.3390/su151411440
Akomea-Frimpong, I., Adeabah, D., Ofosu, D., & Tenakwah, E. J. (2022). A review of studies on green finance of banks, research gaps and future directions. Journal of Sustainable Finance and Investment, 12(4), 1241–1264. https://doi.org/10.1080/20430795.2020.1870202
Akomea-Frimpong, I., Kukah, A. S., Jin, X., Osei-Kyei, R., & Pariafsai, F. (2022). Green finance for green buildings: A systematic review and conceptual foundation. In Journal of Cleaner Production (Vol. 356). Elsevier Ltd. https://doi.org/10.1016/j.jclepro.2022.131869
Anh, K. T., Duong, N. D., Chau, L. P., & Anh, T. D. T. (2026). Banking on sustainability: the impact of green credit on financial performance in ASEAN banks. SN Business and Economics, 6(2). https://doi.org/10.1007/s43546-026-01064-1
Aslam, W., & Jawaid, S. T. (2023). Green banking adoption practices: improving environmental, financial, and operational performance. International Journal of Ethics and Systems, 39(4), 820–840. https://doi.org/10.1108/IJOES-06-2022-0125
Banani, A., & Sunarko, B. (2022). Nexus between Green Finance, Creativity, Energy Accounting and Financial Performance: Banks Sustainability Analysis from Developing Country. International Journal of Energy Economics and Policy, 12(6), 447–455. https://doi.org/10.32479/ijeep.13806
Boot, A., Hoffmann, P., Central, E., Ratnovski, L., & Central, E. (2020). SSRN-id3756798. December.
Buchak, G., Matvos, G., Piskorski, T., & Seru, A. (2018). Fintech, regulatory arbitrage, and the rise of shadow banks. Journal of Financial Economics, 130(3), 453–483. https://doi.org/10.1016/j.jfineco.2018.03.011
Chang, X. (2021). Research on the Influence of Green Credit on the Profitability of Chinese Commercial Banks. In Proceeding of the 5th International Conference on Informatization in Education, Management and Business, Suzhou, China, Iemb, 5–6. https://doi.org/10.25236/iemb.2021.027
Chen, X., You, X., & Chang, V. (2021). FinTech and commercial banks’ performance in China: A leap forward or survival of the fittest? Technological Forecasting and Social Change, 166(February), 120645. https://doi.org/10.1016/j.techfore.2021.120645
Dasilas, A., & Karanovi?, G. (2025). The impact of FinTech firms on bank performance: evidence from the UK. EuroMed Journal of Business, 20(1), 244–258. https://doi.org/10.1108/EMJB-04-2023-0099
Faizulayev, A. (2025). Empirical examination of ESG and fintech factors on financial sustainability: a comparative study of Islamic vs conventional banks in Islamic finance-oriented countries. Asian Journal of Accounting Research, 11(1), 2–21. https://doi.org/10.1108/AJAR-09-2024-0382
Fernando, S.?;, & Lawrence, S. (2014). A theoretical framework for CSR practices: Integrating legitimacy theory, stakeholder theory and institutional theory Future developments in Corporate Social Responsibility disclosure and performance practices in developing countries View project A THEORE. Stewart The Journal of Theoretical Accounting, 10(1), 149–178. https://www.sciencedirect.com/science/article/pii/S0361368217300491https://www.journals.elsevier.com/accounting-organizations-and-societyViewproject
Habib, A., Oláh, J., Khan, M. H., & Luboš, S. (2025). Does integration of ESG disclosure and green financing improve firm performance: Practical applications of stakeholders theory. Heliyon, 11(4). https://doi.org/10.1016/j.heliyon.2025.e41996
Hart, S. L., & Dowell, G. (2011). A natural-resource-based view of the firm: Fifteen years after. Journal of Management, 37(5), 1464–1479. https://doi.org/10.1177/0149206310390219
He, L., Wu, C., Yang, X., & Liu, J. (2019). Corporate social responsibility, green credit, and corporate performance: an empirical analysis based on the mining, power, and steel industries of China. Natural Hazards, 95(1–2), 73–89. https://doi.org/10.1007/s11069-018-3440-7
He, Z., Liu, Z., Wu, H., Gu, X., Zhao, Y., & Yue, X. (2020). Research on the Impact of Green Finance and Fintech in Smart City. Complexity, 2020. https://doi.org/10.1155/2020/6673386
Hidayat-ur-Rehman, I., & Hossain, M. N. (2024). The impacts of Fintech adoption, green finance and competitiveness on banks’ sustainable performance: digital transformation as moderator. Asia-Pacific Journal of Business Administration. https://doi.org/10.1108/APJBA-10-2023-0497
Hsiao, C.-Y., & Wang, J.-W. (2022). The Moderating Role of Green Credit between Business Risk and Financial Performance – A Case Study of Chinese Commercial Banks. Asian Journal of Economics, Business and Accounting, April, 23–33. https://doi.org/10.9734/ajeba/2022/v22i1030599
Jones, T. M., Harrison, J. S., & Felps, W. (2018). How applying instrumental stakeholder theory can provide sustainable competitive advantage. Academy of Management Review, 43(3), 371–391. https://doi.org/10.5465/amr.2016.0111
Khan, I. U., Hameed, Z., Khan, S. U., & Khan, M. A. (2023). Green banking practices, bank reputation, and environmental awareness: evidence from Islamic banks in a developing economy. Environment, Development and Sustainability, 26(6), 16073–16093. https://doi.org/10.1007/s10668-023-03288-9
Leo, M., Sharma, S., & Maddulety, K. (2019). Machine learning in banking risk management: A literature review. Risks, 7(1). https://doi.org/10.3390/risks7010029
Lian, Y., Gao, J., & Ye, T. (2022a). How does green credit affect the financial performance of commercial banks?? —— Evidence from China. Journal of Cleaner Production, 344(January), 131069. https://doi.org/10.1016/j.jclepro.2022.131069
Lian, Y., Gao, J., & Ye, T. (2022b). How does green credit affect the financial performance of commercial banks? ——Evidence from China. Journal of Cleaner Production, 344(September 2021), 131069. https://doi.org/10.1016/j.jclepro.2022.131069
Liu, L., & Tobias, G. R. (2023). Application of Green Finance in Promoting Low-carbon Transformation of Enterprises. Advance in Sustainability, 3(1), 1–6. https://doi.org/10.26855/as.2023.06.001
Luo, S., Yu, S., & Zhou, G. (2021). Does green credit improve the core competence of commercial banks? Based on quasi-natural experiments in China. Energy Economics, 100. https://doi.org/10.1016/j.eneco.2021.105335
Lv, Z., Chen, L., Ali, S. A., Muda, I., Alromaihi, A., & Boltayev, J. Y. (2024). Financial technologies, green technologies and natural resource nexus with sustainable development goals: Evidence from resource abundant economies using MMQR estimation. Resources Policy, 89(December 2023), 104649. https://doi.org/10.1016/j.resourpol.2024.104649
Meng, T., Dato Haji Yahya, M. H., Ashhari, Z. M., & Yu, D. (2023). ESG performance, investor attention, and company reputation: Threshold model analysis based on panel data from listed companies in China. Heliyon, 9(10), e20974. https://doi.org/10.1016/j.heliyon.2023.e20974
Morgan, M., & Jeffrey, C. (2000). Environmental Marketing: A Source of Reputational Competitive and Financial Advantage. Journal of Business Ethics, 23, 299–311.
Nassiry, D. (2019). The Role of Fintech in Unlocking Green Finance: Policy Insights for Developing Countries. Handbook of Green Finance, 883, 315–336.
Ozkan, N., & Zeytinoglu, E. (2024). Intellectual capital and asset quality: A nonlinear investigation in the Turkish Banking sector. Borsa Istanbul Review, October 2023. https://doi.org/10.1016/j.bir.2024.03.005
Ruf, B. M., Muralidhar, K., Brown, R. M., Janney, J. J., & Paul, K. (2001). An empirical investigation of the relationship between change in corporate social performance and financial performance: A stakeholder theory perspective. Journal of Business Ethics, 32(2), 143–156. https://doi.org/10.1023/A:1010786912118
Song, M., Xie, Q., & Shen, Z. (2021). Impact of green credit on high-efficiency utilization of energy in China considering environmental constraints. Energy Policy, 153(October 2020), 112267. https://doi.org/10.1016/j.enpol.2021.112267
Toumi, A., Najaf, K., Dhiaf, M. M., Li, N. S., & Kanagasabapathy, S. (2023). The role of Fintech firms’ sustainability during the COVID-19 period. Environmental Science and Pollution Research, 30(20), 58855–58865. https://doi.org/10.1007/s11356-023-26530-3
Wan, S., Lee, Y. H., & Sarma, V. J. (2023). Is Fintech good for green finance? Empirical evidence from listed banks in China. Economic Analysis and Policy, 80(August), 1273–1291. https://doi.org/10.1016/j.eap.2023.10.019
Xi, B., Wang, Y., & Yang, M. (2022). Green credit, green reputation, and corporate financial performance: evidence from China. Environmental Science and Pollution Research, 29(2), 2401–2419. https://doi.org/10.1007/s11356-021-15646-z
Xu, X., & Li, J. (2020). Asymmetric impacts of the policy and development of green credit on the debt financing cost and maturity of different types of enterprises in China. Journal of Cleaner Production, 264, 121574. https://doi.org/10.1016/j.jclepro.2020.121574
Yin, W., Zhu, Z., Kirkulak-uludag, B., & Zhu, Y. (2021). The determinants of green credit and its impact on the performance of Chinese banks. Journal of Cleaner Production, 286, 124991. https://doi.org/10.1016/j.jclepro.2020.124991
Zhang, D. (2022). Does the green loan policy boost greener production? – Evidence from Chinese firms. Emerging Markets Review, 51(PB), 100882. https://doi.org/10.1016/j.ememar.2021.100882
Zhao, J., Li, X., Yu, C. H., Chen, S., & Lee, C. C. (2022). Riding the FinTech innovation wave: FinTech, patents and bank performance. Journal of International Money and Finance, 122, 102552. https://doi.org/10.1016/j.jimonfin.2021.102552
Zhou, G., Sun, Y., Luo, S., & Liao, J. (2021). Corporate social responsibility and bank financial performance in China: The moderating role of green credit. Energy Economics, 97, 105190. https://doi.org/10.1016/j.eneco.2021.105190
Zhou, X. Y., Caldecott, B., Hoepner, A. G. F., & Wang, Y. (2022). Bank green lending and credit risk: an empirical analysis of China’s Green Credit Policy. Business Strategy and the Environment, 31(4), 1623–1640. https://doi.org/10.1002/bse.2973
Zhou, Z., Tong, J., Lu, H., & Luo, S. (2024). The impact of green finance and technology on the commercial banks’ profit and risk. Finance Research Letters, 66(January), 105715. https://doi.org/10.1016/j.frl.2024.105715

Waris, M., & Malim, N. A. K. (2026). Insights into Green Reputation, Fintech and Bank Performance: The Moderating Role of Green Finance in South Asia. International Journal of Academic Research in Accounting, Finance and Management Sciences, 16(2), 86–98.