Determinants of bankers' bounded rational intention toward green and climate finance in post-COVID-19 Bangladesh: an analysis using PLS-SEM
Mohammad Ali Ashraf, Sarker Rafij Ahmed RatanPurpose
The purpose of this paper is to examine the relationship between bankers' perspectives and their intention to engage in green and climate financing activities after the COVID-19 pandemic in Bangladesh. In particular, it examines how do bankers' perspectives on deep ecological awareness, the normative structure of social pressure and environmental innovative technology affect their intentions toward green financing activities?
Design/methodology/approach
As a genuinely interdisciplinary theme, the idea of bounded rationality has gained substantial popularity in the social sciences, especially in green finance and technology. Based on this understanding, a theoretical framework grounded in the theory of bounded rational planned behavior was established to address the objectives of the present paper. Data were collected from bankers employed by selected commercial banks in Bangladesh following a random sampling procedure and analyzed using the partial least square structural equation modeling technique.
Findings
The findings show that all of the predictors appear to be robust in predicting the green financing intention of the sampled bankers in Bangladesh. The mediating variables also have significant effects.
Practical implications
Bankers' deep ecological awareness appeared to be a highly significant predictor of their attitudes toward bounded rational intention based on deep ecological awareness. Similarly, the social normative structure also appears to be a robust antecedent of subjective norms, which influence respondents’ bounded rational intention toward green and climate (G&C) financing.
Social implications
G&C financing practices can help reduce carbon emissions and other pollutants, thereby improving overall environmental sustainability and ecological conditions.
Originality/value
Few studies have focused on the G&C financing perspective in Bangladesh. This research is one of the empirical studies that will certainly add value for clients, institutions and policymakers in financing and banking sectors.