IIJSE
Vol 8 No 3 (2025): Sharia Economics

The Role of Green Banking on the Environment and Economic Growth in Comparison with Conventional and Islamic Banks

Bagraff, Halida Achmad (Unknown)
Megasari, Ita (Unknown)



Article Info

Publish Date
08 Oct 2025

Abstract

This research investigates the role of Green Banking in supporting the environment and economic growth by comparing it with Conventional Banks and Islamic Banks. This study identifies Green Banking practices, including sustainable projects, carbon emission reduction, and green technology, through a qualitative research method with a literature review approach. The comparison focused on Conventional Banks' freedom in choosing investment projects and the integration of sustainability principles in Islamic Banks. The results show that the implementation of Green Banking has not been optimized, especially in the context of Islamic banking. An evaluation of the impact and effectiveness of Green Banking on the environment and economic growth was conducted through in-depth comparative analysis. It was found that Green Banking protects the environment and positively impacts economic growth by creating jobs and increasing industrial competitiveness. The important role of Green Banking in the national context includes risk management, contribution to sustainable development goals, and increased competitiveness in the global market. Therefore, this research provides an in-depth insight into sustainable banking practices and highlights the necessary challenges and opportunities.

Copyrights © 2025






Journal Info

Abbrev

iijse

Publisher

Subject

Economics, Econometrics & Finance

Description

The Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) is Sharia Economics Journal published by Sharia Economics Department Institut Pesantren KH. Abdul Chalim, Mojokerto. The Journal focuses on the issues of Sharia Economics, the History of Islamic Economic Thought, Islamic Law, Local ...