Effect of Green Banking Practice on the Performance of Deposit Money Banks in Nigeria: An Electronic Banking System Approach

Abstract

The study examined the effect of green banking practice on the performance of Deposit Money Banks in Nigeria. The study employed the historical data research design while the quarterly time series data spanning through the period of 2012 to 2021 were collated from the CBN Statistical Bulletin. The Johansen cointegration test, Parsimonious Error Correction model and the fully modified Least Square were used for the data analysis.The findings indicated evidence of long-run relationship between green banking and the performance of Deposit money banks. Thus, the study concludes that banks can enhance their performance and environmental protection by adopting and promoting socially responsible and environmentally sustainable investment through the vehicle of green banking. In view of the findings therefore, the researcher suggests that the Central Bank of Nigeria should formulate and implement relevant policies that will encourage the full adoption of green banking practices by banks. Finally, Deposit Money Banks should educate their customers as well as creating awareness regarding the benefit of utilizing the electronic banking products in order to enhance the adoption of green banking in Nigeria.