SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS
SIJDEB, Vol. 10, No. 3, September 2026

Islamic Financial Literacy and Sustainable Financial Performance: The Mediating Role of Green Banking

Niken Fakhili (Faculty of Islamic Economics and Business, Universitas Islam Negeri Walisongo, Semarang)
Muyassarah (Faculty of Islamic Economics and Business, Universitas Islam Negeri Walisongo, Semarang)
Mardhiyaturrositaningsih (Faculty of Islamic Economics and Business, Universitas Islam Negeri Walisongo, Semarang)



Article Info

Publish Date
21 Oct 2026

Abstract

This study examines the effect of Islamic financial literacy on sustainable financial performance, with green banking as a mediating variable in Islamic banking institutions in Semarang City, Indonesia. A quantitative approach was employed using a survey of 100 employees from Islamic banking institutions. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that Islamic financial literacy has a positive and significant effect on green banking practices and sustainable financial performance. Furthermore, green banking practices have a positive and significant effect on sustainable financial performance and partially mediate the relationship between Islamic financial literacy and sustainable financial performance. These findings emphasize that enhancing employee financial literacy and strengthening sustainable banking practices are important strategies for promoting the resilience and sustainability of Islamic banks' financial performance. This study also contributes to the literature on sustainable banking based on Islamic principles and offers managerial implications for developing internal banking policies.

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Journal Info

Abbrev

SIJDEB

Publisher

Subject

Economics, Econometrics & Finance

Description

The SIJDEB invites manuscripts in the various topics include, but not limited to functional areas of Financial Management, Marketing Management, Human Resource Management, Entrepreneurship, Strategic Management, Public Economics, Monetary Economics, Industrial Economics, Human Resource Economics, ...