Green Education Crisis through Banking Business
Keywords:
Banking, Business, Crisis, Finance, GreenAbstract
The research aims to detect, identify, and measure the green education crisis level in increasing economic stability and growth, through banking sector business activities as an intermediary function in financial circulation. The method used is quantitative with the Ed Waves Index Development Model, based on Bank Indonesia annual report data from 2000 to 2023 in time series using Eviews Version 9 software. The findings show that the high Non Performing Loan due to changes in macroeconomic behavior and increasing green education crisis, makes financial stability and economic growth difficult to achieve. The study results imply the importance of banking activities to be careful in providing credit to the industrial sector, whether oriented towards environmental sustainability or not, because the green education crisis risk has an indirect effect on financial stability and economic growth.
References
Acharya, V., & Steffen, S. (2020). “Stress Test” for Banks as Liquidity Insurers in a time of COVID Viral V. Acharya 1 and Sascha Steffen 2 19 March 2020. March, 1–8.
Adam, K., & Padula, M. (2011). Inflation Dynamics and Subjective Expectations in the United States. Economic Inquiry, 49(1), 13–25. https://doi.org/10.1111/j.1465-7295.2010.00328.x
Ahmed, S. U. (2012). Green Banking: Advancement and Opportunities. Keiei To Keizai, 92(1–2), 1–12.
Ajello, A. (2016). Financial Intermediation, Investment Dynamics, and Business Cycle Fluctuations. American Economic Review, 106(8), 2256–2303. https://doi.org/10.1257/aer.20120079
Akomea-Frimpong, I., Adeabah, D., Ofosu, D., & Tenakwah, E. J. (2022). A Review of Studies on Green Finance of Banks, Research Gaps And Future Directions. Journal of Sustainable Finance and Investment, 12(4), 1241–1264. https://doi.org/10.1080/20430795.2020.1870202
Albulescu, C. T., Goyeau, D., & Pépin, D. (2013). Financial Instability and ECB Monetary Policy. Economics Bulletin, 33(1), 388–400.
Aysan, A. F., Disli, M., & Ozturk, H. (2017). Financial Crisis, Macroprudential Policies And Depositor Discipline. Singapore Economic Review, 62(1), 5–25. https://doi.org/10.1142/S021759081740001X
Baharudin, B. S., & Arifin, Z. (2023). The Effect of Green Finance on Bank Value: a Case from Indonesia. Journal of Social Research, 2(8), 2817–2825. https://doi.org/10.55324/josr.v2i8.1354
Basmar, E., III, C. M. C., & Basmar, E. (2021). Is an Indonesia the Right Investment Environment After Covid-19? IOP Conference Series: Earth and Environmental Science, 737(1). https://doi.org/10.1088/1755-1315/737/1/012021
Basmar, E., Zain, M. Y., & Paddu, A. H. (2017). Do Bank Credits Cause the Financial Crisis in Indonesia? Scientific Research Journal (SCIRJ), V(X), 36. www.scirj.org
Borio, C., Furfine, C., & Lowe, P. (2001). Procyclicality of the Financial System and Financial Stability: Issues and Policy Options. BIS Papers Chapters, 01(1), 1–57. http://ideas.repec.org/h/bis/bisbpc/01-01.html
Caggiano, G., Castelnuovo, E., Delrio, S., & Kima, R. (2021). Financial Uncertainty And Real Activity: The Good, the Bad, and the Ugly. European Economic Review, 136, 103750. https://doi.org/10.1016/j.euroecorev.2021.103750
Caldara, D., Fuentes-Albero, C., Gilchrist, S., & Zakrajsek, E. (2016). The Macroeconomic Impact of Financial and Uncertainty Shocks. International Finance Discussion Paper, 2016(1166), 1–41. https://doi.org/10.17016/ifdp.2016.1166
Caruana, J. (2011). Central Banking Between Past and Future: Which Way Forward After the Crisis? Speech at the South African Reserve Bank 90th …, 1–5. http://scholar.google.com/scholar?hl=en&btnG=Search&q=intitle:Central+banking+between+past+and+future+:+which+way+forward+after+the+crisis+?#0
Charles, A., Darné, O., & Tripier, F. (2018). Uncertainty and the Macroeconomy: Evidence from An Uncertainty Composite Indicator. Applied Economics, 50(10), 1093–1107. https://doi.org/10.1080/00036846.2017.1349294
Chen, C., Zhang, Y., Bai, Y., & Li, W. (2021). The Impact of Green Credit on Economic Growth - The Mediating Effect of Environment on Labor Supply. PLoS ONE, 16(9 September), 1–21. https://doi.org/10.1371/journal.pone.0257612
Chen, J., Siddik, A. B., Zheng, G. W., Masukujjaman, M., & Bekhzod, S. (2022). The Effect of Green Banking Practices on Banks’ Environmental Performance and Green Financing: An Empirical Study. Energies, 15(4), 1–22. https://doi.org/10.3390/en15041292
Chen, M., Song, L., Zhu, X., Zhu, Y., & Liu, C. (2023). Does Green Finance Promote the Green Transformation of China’s Manufacturing Industry? Sustainability (Switzerland), 15(8). https://doi.org/10.3390/su15086614
Chen, Z., Mirza, N., Huang, L., & Umar, M. (2022). Green Banking - Can Financial Institutions Support Green Recovery? Economic Analysis and Policy, 75, 389–395. https://doi.org/10.1016/j.eap.2022.05.017
Christiano, L. J., Motto, R., & Rostagno, M. (2014). Risk Shocks. American Economic Review, 104(1), 27–65. https://doi.org/10.1257/aer.104.1.27
Claessens, S., Kose, M. A., & Terrones, M. E. (2011). How Do Business and Financial Cycles Interact?; by Stijn Claessens, M. Ayhan Kose and Marco E. Terrones; IMF Working Paper 11/88; April 1, 2011. Journal of International Economics, 97, 178–190. https://www.imf.org/external/pubs/ft/wp/2011/wp1188.pdf
Claudio Borio, C. F. and P. L. (2001). Crises and Contagion: The Role of The Banking System. In Marrying the macro- and microprudential stability dimensions of financial (Issue 1).
Cuciniello, V., & di Iasio, N. (2021). Determinants of the Credit Cycle: A Flow Analysis of the Extensive Margin. SSRN Electronic Journal, 2445. https://doi.org/10.2139/ssrn.3924740
Datta, R., & Mohajan, H. K. (2013). Green finance is essential for economic development and sustainability International Journal Of Research In Commerce, Economics & Management. 3(3). http://ijrcm.org.in/http://ijrcm.org.in/ii
De Bonis, R., & Silvestrini, A. (2014). The Italian Financial Cycle: 1861-2011. Cliometrica, 8(3), 301–334. https://doi.org/10.1007/s11698-013-0103-5
Dikau, S., & Volz, U. (2019). Central Banking, Climate Change, and Green Finance. Handbook of Green Finance, 867, 81–102. https://doi.org/10.1007/978-981-13-0227-5_17
Dikau, S., & Volz, U. (2021). Central Bank Mandates, Sustainability Objectives and The Promotion of Green Finance. Ecological Economics, 184(August 2020), 107022. https://doi.org/10.1016/j.ecolecon.2021.107022
Dörry, S., & Schulz, C. (2018). Green Financing, Interrupted. Potential Directions for Sustainable Finance in Luxembourg. Local Environment, 23(7), 717–733. https://doi.org/10.1080/13549839.2018.1428792
Drehmann, M., Borio, C., & Tsatsaronis, K. (2012). Characterising the Financial Cycle: Don’t Lose Sight of the Medium Term! BIS Working Papers, 380, 1–38. http://ideas.repec.org/p/bis/biswps/380.html
El Karfi, K., & Mentagui, D. (2020). Monetary Policy and Financial Stability. Journal of Advanced Research in Dynamical and Control Systems, 12(5 Special Issue), 1453–1459. https://doi.org/10.5373/JARDCS/V12SP5/20201905
Erdem, M., & Tsatsaronis, K. (2013). Financial Conditions and Economic Activity: A Statistical Approach. BIS Quarterly Review, March, 37–51.
Evgenidis, A., & Malliaris, A. G. (2022). Monetary Policy, Financial Shocks and Economic Activity. Review of Quantitative Finance and Accounting, 59(2), 429–456. https://doi.org/10.1007/s11156-022-01045-z
Falcone, P. M., & Sica, E. (2019). Assessing the Opportunities and Challenges of Green Finance in Italy: An Analysis of The Biomass Production Sector. Sustainability (Switzerland), 11(2). https://doi.org/10.3390/su11020517
Fathihani, Saputra, J., Haat, M. H. C., Yusliza, M. Y., Muhammad, Z., & Bon, A. T. (2021). A Review of Sustainable Green Finance Literature: Mini-Review Approach. Proceedings of the International Conference on Industrial Engineering and Operations Management, 3194–3207.
Fattorini, L., Ghodsi, M., & Rungi, A. (2018). Financial Cycles Around The World. Working Paper Series Econstor, 145.
Gao, K., Chen, H., Tian, S., Sun, R., Cui, K., & Zhang, Y. (2023). A Nexus Between Green Digital Finance and Green Innovation Under Asymmetric Effects on Renewable Energy Markets: A Study on Chinese Green Cities. Environmental Science and Pollution Research, 46632–46646. https://doi.org/10.1007/s11356-022-24750-7
Gilchrist, S., & Zakrajšek, E. (2012). Bank Lending and Credit Supply Shocks. The Global Macro Economy and Finance, 154–176. https://doi.org/10.1057/9781137034250_9
Goetz, M. R., & Gozzi, J. C. (2020). Financial Integration and the Co-Movement of Economic Activity: Evidence from U.S. States. International Finance Discussion Paper, 2020(1305), 1–57. https://doi.org/10.17016/ifdp.2020.1305
Guang-Wen, Z., & Siddik, A. B. (2023). The Effect of Fintech Adoption on Green Finance and Environmental Performance of Banking Institutions During the COVID-19 Pandemic: The Role of Green Innovation. Environmental Science and Pollution Research, 30(10), 25959–25971. https://doi.org/10.1007/s11356-022-23956-z
Guerrieri, V., Lorenzoni, G., Straub, L., & Werning, I. (2022). Can Negative Supply Shocks Cause Demand Shortages? American Economic Review, 112(5), 1437–1474. http://www.nber.org/papers/w26918
Hafstead, M., & Smith, J. (2012). Financial Shocks, Bank Intermediation, and Monetary Policy in a DSGE Model. Unpublished Manucript, September. http://www.rff.org/Documents/HafsteadSmith_September2012.pdf
Hamouda, F. (2021). Identifying economic Shocks with Stock Repurchase Programs. Cogent Economics and Finance, 9(1). https://doi.org/10.1080/23322039.2021.1968112
Harun Ur Rashid, M., & Uddin, M. M. (2018). Green Financing For Sustainability: Analysing the Trends with Challenges and Prospects in the Context of Bangladesh. International Journal of Green Economics, 12(3–4), 192–208. https://doi.org/10.1504/IJGE.2018.097876
Horvath, R., & Baxa, J. (2011). Time-Varying Monetary Policy Rules and Financial Stress. January.
Hossain, A. (2020). The Effects of Green Banking Practices on Financial Performance of Listed Banking Companies in Bangladesh. Canadian Journal of Business and Information Studies, November, 120–128. https://doi.org/10.34104/cjbis.020.01200128
Iacoviello, M. (2015). Financial Business Cycles. Review of Economic Dynamics, 18(1), 140–163. https://doi.org/10.1016/j.red.2014.09.003
Irawan, D. (2018). Systemic Risk Cycle : Evidence from ASEAN-5 Febrio Kacaribu. November.
Islam, M. A., Yousuf, S., Hossain, K. F., & Islam, M. R. (2014). Green Financing in Bangladesh: Challenges and Opportunities - A Descriptive Approach. International Journal of Green Economics, 8(1), 74–91. https://doi.org/10.1504/IJGE.2014.064469
Ivanova, N. G., Katsyuba, I. A., & Firsova, E. A. (2021). Green Finance. IOP Conference Series: Earth and Environmental Science, 689(1). https://doi.org/10.1088/1755-1315/689/1/012003
Jermann, U., & Quadrini, V. (2012). Macroeconomic Effects of Financial Shocks. American Economic Review, 102(1), 238–271. https://doi.org/10.1257/aer.102.1.238
Kamran, H. W., Haseeb, M., Lecturer, S., Nguyen, V. C., & Nguyen, T. T. (2020). Climate Change and Bank Stability : The Moderating Role of Green Financing and renewable Energy Consumption in ASEAN Hafiz Waqas Kamran , Assistant Professor , Faculty of Business Administration , Iqra Muhammad Haseeb , Senior Lecturer , Faculty of Busine. 12(2), 3738–3751. https://osf.io/preprints/v48fa/%0Ahttps://osf.io/v48fa/download
Khalatur, S., & Dubovych, O. (2022). Financial Engineering of Green Finance as an Element of Environmental Innovation Management. Marketing and Management of Innovations, 1(1), 232–246. https://doi.org/10.21272/mmi.2022.1-17
Kilinc, M., & Tunc, C. (2019). The Asymmetric Effects of Monetary Policy on Economic Activity in Turkey. Structural Change and Economic Dynamics, 51, 505–528. https://doi.org/10.1016/j.strueco.2019.03.006
Laeven, L., & Valencia, F. (2013). Systemic Banking Crises Database. IMF Economic Review, 61(2), 225–270. https://doi.org/10.1057/imfer.2013.12
Lindenberg, N., & Volz, U. (2016). Green Banking Regulation: Setting Out a Framework. Report for the Practitioners ’Dialogue on https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2881919
Liu, Z., Waggoner, D. F., & Zha, T. (2011). Sources of Macroeconomic Fluctuations: A Regime-Switching DSGE Approach. Quantitative Economics, 2(2), 251–301. https://doi.org/10.3982/qe71
Loayza, N. V, & Pennings, S. (2020). Macroeconomic Policy in the Time of COVID-19: A Primer for Developing Countries. Policy Notes, 28, 1. https://doi.org/10.1596/33540
Ma, C., Zhou, S., & Rogers, J. (2023). Modern Pandemics: Recession and Recovery. Journal of the European Economic Association, 21(5), 2098–2130. https://doi.org/10.1093/jeea/jvad019
Markard, J., & Rosenbloom, D. (2020). A Tale of Two Crises : COVID-19 and Climate. Sustainability: Science, Practice, and Policy, 16(1), 53–60. https://doi.org/10.1080/15487733.2020.1765679
Maslennikov, V. V., & Larionov, A. V. (2020). Impact of the Behavioral Cycle on Cash Flow Formation. Finance: Theory and Practice, 24(5), 100–111. https://doi.org/10.26794/2587-5671-2020-24-5-100-111
Masukujjaman, M., & Aktar, S. (2014). Green Banking in Bangladesh: A Commitment Towards the Global Initiatives. Journal of Business and Technology (Dhaka), 8(1–2), 17–40. https://doi.org/10.3329/jbt.v8i1-2.18284
Md. Shafiqul Islam, M. S. I. (2013). “Green Banking Practices in Bangladesh.” IOSR Journal of Business and Management, 8(3), 39–44. https://doi.org/10.9790/487x-0833944
Mir, A. A., & Bhat, A. A. (2022). Green Banking and Sustainability – a Review. Arab Gulf Journal of Scientific Research, 40(3), 247–263. https://doi.org/10.1108/AGJSR-04-2022-0017
Mohd, S., & Kaushal, V. K. (2018). Green Finance: A Step Towards Sustainable Development. MUDRA : Journal of Finance and Accounting, 5(01). https://doi.org/10.17492/mudra.v5i01.13036
Nasreen, S., & Anwar, S. (2019). Financial Stability and Monetary Policy Reaction Function for South Asian Countries: An Econometric Approach. Singapore Economic Review, 1–30. https://doi.org/10.1142/S0217590819500395
Nawaz, M. A., Seshadri, U., Kumar, P., Aqdas, R., Patwary, A. K., & Riaz, M. (2021). Nexus Between GreenFinance And Climate Change. Environmental Science and Pollution Research (2021) 28:6504–6519, 6504–6519.
Nedumaran, G., M, M., & Baladevi, M. (2020). Impact on Customer Perceptions of Green Banking Process with Special Reference in Rajapalayam Taluk. SSRN Electronic Journal, 9376. https://doi.org/10.2139/ssrn.3551974
Ngo, T. Q., Doan, P. N., Vo, L. T., Tran, H. T. T., & Nguyen, D. N. (2021). The Influence of Green Finance on Economic Growth: A COVID-19 Pandemic Effects on Vietnam Economy. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.2003008
Nolan, C., & Thoenissen, C. (2009). Financial Shocks and the US Business Cycle. Journal of Monetary Economics, 56(4), 596–604. https://doi.org/10.1016/j.jmoneco.2009.03.007
Nowzohour, L., & Stracca, L. (2020). More Than a Feeling: Confidence, Uncertainty, and Macroeconomic Fluctuations. Journal of Economic Surveys, 34(4), 691–726. https://doi.org/10.1111/joes.12354
Orellana, M. (2013). Climate Change, Sustainable Development and the Clean Development Mechanism. Realizing the Right to Development, 321–340. https://www.ohchr.org/Documents/Issues/Development/RTDBook/PartIIIChapter23.pdf
Park, H., & Kim, J. D. (2020). Transition Towards Green Banking: Role of Financial Regulators and Financial Institutions. Asian Journal of Sustainability and Social Responsibility, 5(1). https://doi.org/10.1186/s41180-020-00034-3
Pisani-ferry, J., & Ramos, M. (2011). Macroeconomic Policy Interdependence and the G-20 Rethinking Central Banking Committee on Rethinking Central Banking Committee on.
Rakić, S., & Mitić, P. (2012). Green Banking: Green Financial Products with Special Emphasis on Retail Banking Products. Pravci Strukturnih Promena u Procesu Pristupanja Evropskoj Uniji, 47009(Iii), 54–60.
Rapi, K., Maisarah, S., Ayu, S., Rambe, F., Chandra, W., & Rahmana, A. (2021). Green Finance for the Era of Post COVID -19: A Systematic Literature. Advances in Economics, Business and Management Research, 198, 191–195.
Rasoulinezhad, E., & Taghizadeh-Hesary, F. (2022). Role of Green Finance in Improving Energy Efficiency and Renewable Energy Development. Energy Efficiency, 15(2). https://doi.org/10.1007/s12053-022-10021-4
Rochon, M. P.-. (2020). The Length of Financial Cycle and its Impact on Business Cycle in Poland. European Research Studies Journal, XXIII(4), 1278–1290. https://ideas.repec.org/a/ers/journl/vxxiiiy2020i4p1278-1290.html
Sachs, J. D., Woo, W. T., Yoshino, N., & Taghizadeh-Hesary, F. (2019). Why Is Green Finance Important? Asian Development Bank Institute. Institute of Sciences. ADBI Working Paper Series, 917. https://www.adb.org/publications/why-green-finance-important
Sahinoz, S., & Erdogan Cosar, E. (2018). Economic Policy Uncertainty and Economic Activity in Turkey. Applied Economics Letters, 25(21), 1517–1520. https://doi.org/10.1080/13504851.2018.1430321
Samad, G., & Manzoor, R. (2015). Green Growth: Important Determinants. Singapore Economic Review, 60(2). https://doi.org/10.1142/S0217590815500149
Schaefer, H. (2017). Green Finance and the German Banking System. SSRN Electronic Journal, 49(0). https://doi.org/10.2139/ssrn.2959931
Schüler, Y. S., Hiebert, P., & Peltonen, T. A. (2021). Characterising the Financial Cycle: A Multivariate and Time -Varying Approach. SSRN Electronic Journal, 1846. https://doi.org/10.2139/ssrn.2664126
Shakil, M. H., Azam, M. K. G., Tasnia, M., & Munim, Z. H. (2014). An Evaluation of Green Banking Practices in Bangladesh. IOSR Journal of Business and Management, 16(11), 67–73. https://doi.org/10.9790/487x-161146773
Shen, C. H., Ren, J. Y., Huang, Y. L., Shi, J. G., & Wang, A. Q. (2018). Creating Financial Cycles in China and Interaction with Business Cycles on the Chinese Economy. In Emerging Markets Finance and Trade (Vol. 54, Issue 13). https://doi.org/10.1080/1540496X.2017.1369402
Shershneva, E. G., & Kondyukova, E. S. (2020). Green Banking as a Progressive Format of Financial Activity in Transition to Sustainable Economy. IOP Conference Series: Materials Science and Engineering, 753(7). https://doi.org/10.1088/1757-899X/753/7/072003
Shleifer, A., & Vishny, R. W. (2019). Impact of Green Financing for the Corporate Governance in the Banking Industry. Journal of Finance, 52(2), 737–783. https://papers.ssrn.com/abstract=3571734
Sun, Y., Bao, Q., & Taghizadeh-Hesary, F. (2023). Green Finance, Renewable Energy Development, and Climate Change: Evidence from Regions of China. Humanities and Social Sciences Communications, 10(1), 1–8. https://doi.org/10.1057/s41599-023-01595-0
Taghizadeh-Hesary, F., & Yoshino, N. (2020). Sustainable Solutions for Green Financing and Investment in Renewable Energy Projects. Energies, 13(4). https://doi.org/10.3390/en13040788
Ullah, M. M. (2013). World Review of Business Research Green Banking in Bangladesh - A Comparative Analysis. World Review of Business Research, 3(4), 74–83.
Volz, U. (2018). Fostering Green Finance for Sustainable Development in Asia. SSRN Electronic Journal, 814. https://doi.org/10.2139/ssrn.3198680
Wang, Y., Liu, J., Yang, X., Shi, M., & Ran, R. (2023). The Mechanism of Green Finance’s Impact on Enterprises’ Sustainable Green Innovation. 5(July), 452–478. https://doi.org/10.3934/GF.2023018
Wang, Y., & Zhi, Q. (2016). The Role of Green Finance in Environmental Protection: Two Aspects of Market Mechanism and Policies. Energy Procedia, 104, 311–316. https://doi.org/10.1016/j.egypro.2016.12.053
Wilson, P. (2015). Monetary Policy and Financial Sector Development. Singapore Economic Review, 60(3), 1–25. https://doi.org/10.1142/S0217590815500319
Wolff-hamacher, S. (2007). Local Currency Bond Issues by International Financial Institutions 1. Bcbs.
Yanarella, E. J., Levine, R. S., & Lancaster, R. W. (2009). Green versus Sustainability. Sustainability, 2(5), 296–302. https://doi.org/10.1089/SUS.2009.9838
Ye, J., Al-Fadly, A., Huy, P. Q., Ngo, T. Q., Hung, D. D. P., & Tien, N. H. (2022). The Nexus Among Green Financial Development and Renewable Energy: Investment in the Wake of the Covid-19 Pandemic. Economic Research-Ekonomska Istrazivanja , 35(1), 5650–5675. https://doi.org/10.1080/1331677X.2022.2035241
Zhang, X., Wang, Z., Zhong, X., Yang, S., & Siddik, A. B. (2022). Do Green Banking Activities Improve the Banks’ Environmental Performance? The Mediating Effect of Green Financing. Sustainability (Switzerland), 14(2), 1–18. https://doi.org/10.3390/su14020989
Zheng, G. W., Siddik, A. B., Masukujjaman, M., Fatema, N., & Alam, S. S. (2021). Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs). Sustainability (Switzerland), 13(2), 1–17. https://doi.org/10.3390/su13020795
Zhou, X., Tang, X., & Zhang, R. (2020). Impact of Green Finance on Economic Development and Environmental Quality: A Study Based on Provincial Panel Data from China. Environmental Science and Pollution Research, 27(16), 19915–19932. https://doi.org/10.1007/s11356-020-08383-2
Zioło, M., Bak, I., Cheba, K., Spoz, A., & Niedzielski, P. (2021). Sustainable Financial Systems Toward Sustainability in Finance. Institutional and Managerial Approach. Procedia Computer Science, 192, 4237–4248. https://doi.org/10.1016/j.procs.2021.09.200
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2025 Edwin Basmar, Nisa Novia Avien Christy
This work is licensed under a Creative Commons Attribution 4.0 International License.
