Analysis of the Green Banking Implementation Model on Banking Performance at Bank Syariah Indonesia

Abstract

The continuous increase in climate change has attracted global attention. Many countries in the world have made the necessary commitments to mitigate climate change. Then this attracts the attention of economic actors, especially for the banking sector, which is known as green banking. The concept of green banking is banking that emphasises the application of sustainability in financial distribution or operational activities. In this case it is the same as that the bank seeks to create environmentally friendly practices by reducing the carbon footprint of banking operations. This study aims to implement green banking practices at Bank Syariah Indonesia and its impact on banking performance.

This study uses a descriptive qualitative approach with a field research method through direct observation and interviews with the Branch Manager, Operational Staff, Teller and Micro Staff of Bank Syariah Indonesia. Indicators of green banking activities used in this study include Green Product, Green Operation, Green Customer and Green Policy. 

The results of this study indicate that Bank Syariah Indonesia implements green banking practices based on research indicators, such as Green Product, Green Operation, Green Customer and Green Policy, of the four indicators Bank Syariah Indonesia has implemented all indicators well. This has a positive impact on the image and reputation of Bank Syariah Indonesia as a bank that cares about the environment and social responsibility. In addition, the existence of Operational Efficiency in banking has helped Bank Syariah Indonesia increase efficiency and reduce costs. The use of technology also speeds up the transaction process and services for customers and increases customer satisfaction