Green banking promotes environmentally friendly practices and reduces the carbon footprint of banking activities. Green banking services are a new financial phenomenon that leverages public funds to increase private investment in clean energy technologies. The term green banking services refers to the extent of the bank's friendship and support for the environment, as well as how committed the bank is to paying attention to the green environment and adhering to its ethical policies. Green banks are simply banks that value social awareness and take social and environmental responsibility for their community. Banks and other financial institutions are putting a lot of effort and interest into transitioning to green banking services and providing more incentives to preserve the environment. As a result, implementing environmentally friendly business practices improves the quality of bank assets and contributes to the creation of a low-carbon economy.

Literature Review

According to Krebsbach [1], author proposed that banks adopt green lending principles in such a way that their customer base is not impacted. Author came to the conclusion that environmental management in the banking sector is similar to risk management in that it reduces credit risk, improves asset quality, and increases enterprise value. In their research article on “Green Banking in India,”, Pravakar, and Nayak, Bibhu Prasad [2] highlighted that the banking sector is one of the major stake holders in the industrial sector; it can face credit risk and liability risk. Furthermore, environmental impact may have a long-term impact on the quality of assets as well as the rate of return of banks. Goyal and Joshi [3] highlighted social and ethical issues such as social banking, ethical banking, green banking, and rural banking. Which facilitates the achievement of long-term banking and finance development.They came to the conclusion that banks can act as a socially and ethically oriented organization by granting loans only toorganizations that have environmental concerns. Vikas Nath et al. [4] noted the RBI's green rating standards, the World Bank's environmental and social norms, the initiatives taken by public and private sector banks in India to adopt Green Banking practices, and to enlist the various strategies for Green Banking adoption. There is still a gap between the international concept of green banking and the Indian concept of Green Banking. Sujatha.S and Ragupathi.M [5] Green banking and environmental sustainability by Indian commercial banks, Green banking initiatives of Indian economic banks studied the benefits of going green through green banking. Green banking will not only help the environment, but it will also help the bank's assets in the future. Pariag-Maraye, N., Munusami, N., and Ansaram, K. [6] the results of the hypothesis testing show that several bank customers are familiar with the green bank concept. According to this study, if Mauritius has environmentally conscious consumers, banks can expand their operations to include environmentally friendly products. Dr.K.Nithya Kala, Dr.K.Vidyakala, Jamuna.S [7] The results of the study suggest that Environmental Training, Energy Efficient Practices and Green Projects have significant Impact on Bank’s Environmental Performance. Amir, Md. Khaled [8], found that support from the government should be getting heightened priority to enhance its performance and area. So it can be easily presumed that green banking already put a great impact on a great portion of the banking industry in Bangladesh so far.

Green banking is an environmentally friendly system that has the potential to increase customer satisfaction as well as bank performance. According to a review of the literature, various scholars at the national and international levels have initiated various studies on various aspects of green banking. However, only a few studies on green banking have been initiated at the national level. There appears to be a gap in the research regarding green banking initiatives and techniques in Oman. As a result, our research on A Study of Bank Employees' Awareness and Perspectives on Green Banking in Nizwa will aid in closing this gap.

Green banking considers all tools for ensuring sustainable development in which economic activity has no negative impact on the environment. Green banking is all about going above and beyond to keep the planet livable while causing no significant harm. Banks, as lenders, can influence companies to adopt environmentally friendly practices. A Study of Bank Employees' Awareness and Perspectives on Green Banking in Nizwa has been conducted in this context.

Objectives of the Study

• To know about the green banking initiative and the most effective ways to implement green banking

• To determine the factors that motivate banks to use green banking services

• To study the bankers' views on the benefits and strategies of green banking

Research Design and Data Gathering

This study used the quantitative descriptive research which involves the collection and analysis of data pertaining to bank employees' awareness and perspectives on green banking in Nizwa as well as factors that motivate banks to use green banking services and bankers' views on the benefits and strategies of green banking. The researchers gathered information from the respondents through a survey questionnaire distributed using Google forms. Targeted participants of the study were the bank employees' in Nizwa from different banks. The questionnaire was distributed to 150 bank employees'. Random Sampling method was employed. Effective Way to Implement Green Banking and Factors motivating bank to use green banking services were asked to be ranked by the respondents from the greatest to the least. Questions used were all closed-ended questions.

Data Analysis and Ethical Considerations

The survey was utilized as the researchers’ primary basis of their analysis of the bank employees' awareness and perspectives on green banking in Nizwa. In determining the significant differences on the responses, demographic profile is identified as independent variables, assumptions regarding the green banking concept and awareness on green banking initiative were taken as the dependent variables. Statistical treatments used to analyze the data was the chi square test analysis. Microsoft Excel and the Statistical Package for the Social Sciences (SPSS) were the tools used for the study. The researchers ensure that ethical considerations were observed in the conduct of the study. Information obtained were treated with utmost confidentiality and used solely for research purposes.

From Table 1, it can be deduced that Males make up 58 percent of the respondents, while Females make up 42 percent. 41.33 percent of respondents are between the ages of 26 and 30, while 9.33 percent are over the age of 40. A Bachelor's degree is held by 52 percent of respondents, while a Diploma is held by 18 percent.

Table 2 explains the assumptions about the green banking concept; it is clear from the table that 36 percent of the respondents understand the concept of green banking as all of the above (i.e. environment protection, e-banking, paperless banking, and uses of renewable resources), 25.33 percent understand the concept as environment protection, and 7.33 percent understand the concept as use of renewable resources.

Table1: Demographic Profile of the Respondents

In parenthesis, percentages are provided

Table 2: Assumption Regarding the Green Banking Concept

In parenthesis, percentages are provided

Table 3: Gender and Assumptions Regarding the Green Banking Concept

In parenthesis, percentages are provided

Table 4: Age and Assumptions Regarding the Green Banking Concept

In parenthesis, percentages are provided

Table 5: Education and Assumptions Regarding the Green Banking Concept

In parenthesis, percentages are provided

According to Table 3, 25.33 percent of male respondents and 10.67 percent of female respondents understood green banking to mean all of the above (i.e. environmental protection, e-banking, paperless banking, and the use of renewable resources), while 16 percent of male respondents and 9.33 percent of female respondents understood it to mean environment protection. It might be said that there is a significant difference in how green banking concept is seen by men and women. Based on the conclusion, the following hypothesis is formulated:

• Ho: There is no significant relationship in how green banking concept is seen by men and women

Result of Chi Square Test

The chi-square statistic is 11.591. The p-value is 0.020. At p 0.05, the result is significant. The Null hypothesis (H0) is rejected because the significant value is 0.020, which is less than 0.05 (p-value). As a result, it may be inferred that men and women have distinct perspectives on the concept of green concept. 

Table 4 shows that 14 percent of respondents in the 31-35 age group thought green banking meant all of the above (i.e. environmental protection, e-banking, paperless banking, and the use of renewable resources), while 1.33 percent of respondents in the 36-40 age group and above 40 age group thought green banking meant the use of renewable resources. It is determined that there is a considerable disparity in how the notion of green banking is understood by different age groups. Based on the conclusion, the following hypothesis is formulated:

• Ho: There is no significant relationship in how different age groups understand the green banking concept

Result of Chi Square Test

The chi-square statistic is 9.051. The p-value is 0.698. At p 0.05, the result is not significant. The null hypothesis (H0) is accepted because the significant value is 0.698, which is more than 0.05 (p-value). As a result, there is no significant relationship in how different age groups perceive the notion of green banking concept.

According to Table 5, 23.33 percent of respondents with a bachelor's degree understood green banking to include all of the above (i.e. environmental protection, e-banking, paperless banking, and the use of renewable resources), while 1.33 percent of respondents with a diploma degree understood green banking to include all of the above (i.e. environmental protection, e-banking, paperless banking, and the use of renewable resources). 

Table 6: Awareness on Green Banking Initiative

In parenthesis, percentages are provided

Table 7: Result of Chi Square Test - Gender and Awareness on Green Banking Initiatives

* 5% level of significance

Table 8: Effective Way to Implement Green Banking

In parenthesis, percentages are provided

Table 9: Factors Motivating Bank to Use Green Banking Services

In parenthesis, percentages are provided

Based on this, it can be stated that there is a substantial variance in how the notion of green banking is understood based on education. Based on the conclusion, the following hypothesis is formulated:

• Ho: There is no significant relationship in how green banking concept is understood based on education

Result of Chi Square Test 

The chi-square statistic is 22.3171. The p-value is 0.004. At p 0.05, the result is significant. The Null hypothesis H0 is rejected because the significant value is 0.004, which is less than 0.05 (p-value). As a result, there is a significant variance in how people of various qualifications view green banking concept.

Table 6 shows awareness about green banking initiatives. Cash deposit system is the green banking initiative taken up by their bank, according to 92 percent of respondents, followed by internet banking at 89.33 percent, online bill payment at 86 percent, and green commercial building loan at 24 percent. It can be concluded that majority of the respondents are aware of the majority of the green banking initiatives. Based on the above conclusion, the following hypothesis are formulated:

• Ho: There is no significant relationship in gender awareness on green banking initiatives

The findings of the chi square test on gender knowledge of green banking initiatives are summarized in Table 7. Solar ATM, Cash deposit system, E investing services, and green home equity loan are all significant, according to the findings. Because the significant values for Solar ATM, Cash deposit system, E investing services, and green home equity loan are less than 0.05, the null hypothesis H0 is rejected (p-value). As a result, there is a significant relationship in gender awareness on Solar ATM, Cash deposit system, E investment services, and green home equity loan initiatives.

The most effective strategy to implement green banking is shown in Table 8. The most successful technique to implement green banking, according to respondents, is to use paperless banking methods, followed by energy consumption measures such as fluorescent lamps and so on, with ‘green building' being the least effective.

Table 9 shows that reducing carbon footprint is the most important factor driving banks to use green banking services, followed by protect environment, and ‘convenient to use' is the least important factor for banks to use green banking services.

Table 10: Bankers' Perspectives on Green Banking Benefit

In parenthesis, percentages are provided

Table 11: Bankers' Perspectives on Green Banking Strategies

In parenthesis, percentages are provided

Table 11: Bankers' Perspectives on Green Banking Strategies

In parenthesis, percentages are provided

Table 10 depicts bankers' thoughts on the benefits of green banking. Green banking benefits are viewed as avoiding paperwork by 56 percent of respondents, followed by environmental lending standards by 18.67 percent.

Table 11 shows that 28.68 percent of respondents consider carbon footprint reduction through paperless banking to be a green banking approach, followed by green banking financial products and social responsibility services at 18.67 percent.

The following conclusions are drawn from the study's objectives:

• The respondents understand the concept of green banking as environment protection, e- banking, paperless banking, and uses of renewable resources. Men and women have distinct perspectives on the concept of green concept and there is no significant relationship in how different age groups perceive the notion of green banking concept

• Majority of the respondents are aware of the majority of the green banking initiatives and there is a significant relationship in gender awareness on Solar ATM, Cash deposit system, E investment services, and green home equity loan initiatives

• The most successful technique to implement green banking, according to respondents, is to use paperless banking methods and reducing carbon footprint is the most important factor driving banks to use green banking services

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2. Pravakar, S. and. “Green banking in India.” Indian Economic Journal, 2008.

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4. Nath, V.N. “Green banking practices: A review.” IMPACT – International Journal of Research in Business Management, vol. 2, 2014, pp. 45–62.

5. Ragupathi, M. and. “Green banking initiatives of commercial banks in India.” International Research Journal of Business and Management, vol. 8, no. 2, 2015, pp. 74–81.

6. Pariag-Maraye, N.M. “A customer’s perspective of green banking: A case study of commercial banks in Mauritius.” Theoretical Economics Letters, 2017.

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8. Amir, M.K. “Banker attitudes and perception towards green banking: An empirical study on conventional banks in Bangladesh.” International Journal of Finance and Banking Studies, vol. 10, no. 2, 2021, pp. 1–10