Exploring the Dynamics of Green Banking and Finance: A Literature Review

In the past decade, green banking and finance have gained significant prominence as crucial elements in the global financial and environmental landscape. Scholars have dedicated considerable efforts to raise awareness and enhance the understanding of these concepts and their far-reaching implications. Despite the growing recognition of the importance of green banking and finance, there remains a significant challenge in achieving widespread adoption and effective implementation, particularly in emerging economies. To address this challenge, this chapter provides a comprehensive exploration of the concept of green banking and finance, shedding light on its nature, origins, and the factors influencing its successful adoption, including stakeholder pressures, innovation and product development, bank size, and market dynamics. The chapter further explores the obstacles impeding the effective adoption of green banking and finance, including the lack of awareness, regulatory complexities, costs, risks, technology, and greenwashing. The chapter concludes by suggesting valuable practical insights and solutions aimed at mitigating the global obstacles hindering the realization of the full potential of green banking and finance. If these obstacles are addressed head-on, through a collaborative effort among stakeholders, it is possible to unlock the full potential of green banking and finance and drive positive change on a global scale.