<![CDATA[The growing emphasis on sustainable finance has encouraged banks to adopt green banking practices, raising questions about their implications for operational efficiency and financial performance. This study investigates the impact of green banking practices, represented by green innovation and green technology, on the financial results of Indonesian commercial banks, with operational efficiency acting as a mediating variable, and stakeholder theory serving as the theoretical foundation. Using an explanatory quantitative approach, the study analyzes secondary data derived from annual and sustainability reports from banks listed on the Indonesia Stock Exchange (IDX) between 2022 and 2024. Of the 47 listed banks, 29 satisfied the sampling criteria, yielding 87 bank-year observations. The findings suggest that green innovation and green technology negatively affect operational efficiency, suggesting that environmental initiatives increase short-term operational costs. However, both variables positively influence financial performance, reflecting the long-term benefits of enhanced stakeholder trust, legitimacy, and corporate reputation. Operational efficiency negatively influences financial performance and serves as a significant mediator in the association between green banking practices and financial performance. These results indicate that although green initiatives may lower efficiency in the short term, the long-term financial gains outweigh the incurred costs.]]>
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