<p>In this study, the effects of banking activities on carbon (CO₂) and greenhouse gas (GHG) emissions were examined using the annual data of Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan, which are member countries of the Organization of Turkic States (OTS), for the period 2000–2024. Within the scope of the research, two different panel data models were created in order to analyze the effects of banking indicators on emissions. The empirical findings obtained from the analyzes showed that the environmental impacts of banking activities differed over time and according to preferred variables. It was determined that loans provided to the private sector did not have a significant impact on CO₂ emissions while increasing greenhouse gas emissions in the short term. However, in the long-term (FMOLS) analysis, it was determined that loans provided to the private sector had a strong and positive impact on both CO₂ and greenhouse gas emissions. While the number of credits used has a reducing effect on CO₂ emissions in the short term, it increases greenhouse gas emissions in the long term. While the number of bank branches representing the physical infrastructure is meaningless on emissions in the short term, it leads to very strong increases in both CO₂ and greenhouse gas emissions in the long term. On the other hand, the number of ATMs and deposit accounts increase emissions in the short term and strongly reduce emissions in the long term. Per capita energy use, one of the macroeconomic control variables, is the strongest determinant of emissions in the short term, while per capita income significantly reduces CO₂ emissions in the short term. Interest rates, on the other hand, have a limiting effect on emissions in the long run. The results obtained reveal that the effects of banking activities on emissions differ in the short and long term, indicating that policymakers need to develop long-term strategies to align the financial sector with environmental sustainability goals.</p>