Title: GREEN BANKING DISCLOSURE AND PERFORMANCE: EVIDENCE FROM VIETNAMESE COMMERCIAL BANKS
Authors:
Nguyet Thi Minh Dang, Anh Thi Ngoc Tran, Vy Thi Thuy Pham, Vy Yen Ngo, Tu Thi Thanh Nguyen and Anh Tuyet Tran
Abstract:
Information transparency and sustainable development have become critical imperatives for Vietnam’s banking sector. Green banking encompasses banking activities, policies and initiatives that incorporate environmental and social considerations into business strategy, credit allocation, risk management and internal operations. The dual objectives are to minimize negative environmental impacts and to promote sustainable economic development. In practice, green banking is implemented and communicated to stakeholders primarily through green banking information disclosure. This study examines the impact of green banking information disclosure on the financial performance of 20 Vietnamese commercial banks over the period 2016 – 2024. A Green Banking Disclosure Index (GBDI) is constructed through content analysis of annual reports and related documents based on 15 unweighted criteria. Using panel data regression models and controlling for bank characteristics (size, cost-to-income ratio, and capital adequacy ratio), the study investigates the relationship between the level of green disclosure and financial outcomes. The findings provide empirical evidence on the relationship between green banking information disclosure and banks’ financial performance, highlighting the role of green transparency not only in regulatory compliance but also as a driver of operational efficiency and market value. Based on the results, the study offers governance implications and policy recommendations to enhance the quality of green information disclosure, thereby improving financial performance and supporting sustainable development of Vietnam’s commercial banking system.
Keywords: Commercial banks, financial performance, GBDI, green banking.
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