Islamic Economics and finance in Focus (IEFF)
Vol. 5 No. 4 (2026)

Green Banking Disclosure and Sustainable Financing on Islamic Bank Financial Performance

Seviadinda, Zahara (Unknown)
Citra Rahayu Indraswari (Unknown)



Article Info

Publish Date
06 Nov 2026

Abstract

This study examines the effect of the Green Banking Disclosure Index (GBDI) and Sustainable Financing Ratio (SFR) on the financial performance of Islamic banking in Indonesia, measured by Return on Assets (ROA) and Net Income (NI) over the period 2021–2024. A quantitative approach is employed using panel data from 8 Islamic commercial banks selected through purposive sampling. The Random Effect Model (REM) estimated via Generalized Least Squares (GLS) is applied, with bank size and Non-Performing Financing (NPF) included as control variables. GBDI has a positive but insignificant effect on both ROA and NI, suggesting that green banking disclosure remains largely administrative and has yet to generate measurable financial impact. In contrast, SFR has a positive and signifi-cant effect on both ROA and NI, demonstrating that the actual implementation of sustainable financing directly contributes to improved profitability in Islamic banks.

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Journal Info

Abbrev

ieff

Publisher

Subject

Religion Economics, Econometrics & Finance Social Sciences

Description

Publish all forms of quantitative and qualitative research articles and other scientific studies related to the field of Islamic Economics and ...