Al Urwah : Sharia Economics Journal
Vol. 3 No. 1: Sharia Governance and Sustainable Finance: Ethical Transformation in the Digital and G

The Influence of Knowledge, Sharia Compliance, Religiosity, and Local Wisdom on the Implementation of Green Banking Behavior

Febriza, Milla (Unknown)



Article Info

Publish Date
12 Aug 2025

Abstract

This study examines how knowledge, sharia compliance, religiosity, and local wisdom influence green banking behavior among employees of Bank Muamalat in West Sumatra, Indonesia. While green banking is widely discussed in sustainable finance, few studies explore its behavioral drivers in Islamic banking, especially with religious and cultural integration. Using a quantitative approach, data were collected from 49 employees across four branches (Padang, Payakumbuh, Bukittinggi, Solok) through a structured questionnaire and analyzed with multiple linear regression (SPSS 26). The results show that knowledge (β = 0.234, p < 0.05), sharia compliance (β = 0.163, p < 0.01), religiosity (β = 0.212, p < 0.01), and local wisdom (β = 0.269, p < 0.001) each positively and significantly affect green banking behavior. Together, these variables explain 72.5% of its variance (R² = 0.725). This study is among the first to integrate behavioral, religious, and cultural dimensions in explaining green banking practices in Indonesia’s Islamic financial institutions. The findings highlight that cognitive, regulatory, spiritual, and cultural factors jointly shape environmentally responsible banking behavior. Islamic banks are encouraged to enhance training, reinforce sharia compliance, and integrate local wisdom into environmental programs to strengthen sustainable finance practices.

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Journal Info

Abbrev

alurwah

Publisher

Subject

Religion Economics, Econometrics & Finance

Description

Al Urwah is a peer-reviewed journal that aims to advance islamic economies in emerging markets, namely economies in emerging countries and economies in emerging areas in developed countries. The scope of Al Urwah are but strictly limited to: Islamic Economics Sharia Accounting Zakat Management, ...