Factors affecting the development of green banks at commercial banks in Ho Chi Minh City

Abstract The banking sector plays a special intermediary role in providing financial support to various sectors of the economy. Therefore, by incorporating green standards into its lending decisions, the commercial banking system (CB) will promote economic development and help build a greener and cleaner world. In Vietnam, research on Green Banking is limited compared to many international investigations. Most of these studies focus on reports and presentations that review experiences from other countries. Therefore, there are still many gaps in theoretical and practical research on green banking in Vietnam, making this an area ripe for further quantitative exploration. Consequently, it is necessary to research both the theoretical and practical aspects of “green banking” and establish quantitative models to assess the impact on the development of green banking in Vietnam. The objective of this study is to find out the factors that can promote the development of green banking at commercial banks in Ho Chi Minh City in the coming time. By using EFA and regression model, the results show 07 factors, including: (1) Potential benefits; (2) Concern for the environment; (3) Pressure from stakeholders; (4) Green product development; (5) Banking technology; (6) Bank brand; (7) Banking policy have the main influence on the development of green banking at commercial banks in Ho Chi Minh City. From the research results, the author makes some recommendations to improve the development of green banking activities of commercial banks in Ho Chi Minh City.