Analysis of Green Banking Status in Sustainable Economic Development

Green Banking is the concept of a comprehensive expansion of banking strategies that leads to sustainable economic development. Accordingly, Green Banking strategies include a set of operations and guidelines that make the bank sustainable in respect to economically, environmentally and socially and have a two-way approach. Such that in the early stages, the banks focus on the green transfer of internal banking operations, including the use of renewable energy, automation and other measures in order to minimize the effects of carbon on banking activities. Then, in the second step, they adopt eco-friendly financing methods and reduce the environmental risks of their project before making financial decisions. Therefore, the use of green strategies in banking is not only beneficial for the environment, but also has several benefits including credit risk reduction, bank costs reduction, and increasing the reputation of the bank as an environmental sponsor. Accordingly, the prevalence of green banking indicates the win-win status among the banks, industry and the community that eventually would help to sustainable development. Therefore, in this study, by applying the documentary and overview methods, experiences of some countries regarding to the green banking in achieving sustainable development, the implementation of green banking, and the corresponding strategies are discussed while exploring the concepts of the green banking.