Ianna Journal of Interdisciplinary Studies (Jul 2024)
Factors Influencing Sustainable Banking Development: A Case Study of Commercial Banks in Vietnam
Abstract
Background: Sustainable banking development is crucial for financial institutions' long-term viability and profitability, particularly in an era of increasing global environmental awareness and regulatory pressures. Understanding the factors that influence sustainable banking is essential for banks aiming to enhance their sustainability practices and gain a competitive edge. Objective: The study objective explores the primary factors affecting sustainable banking development in Vietnam. Methodology: The authors conducted a descriptive survey and collected data from 600 managers who contribute to the sustainable development of commercial banks in Vietnam. The data were collected using a questionnaire and analyzed using SPSS 20.0 software, and the results were presented in tables. Result: Research results show six factors affecting sustainable banking development with a five percent significance level. The factors are (1) regulatory and policy, (2) economic and market, (3) technological, (4) social and cultural, (5) environmental, and (6) management capacity. Conclusion: Despite the challenges, the integration of sustainable practices in banking is imperative for long-term viability and profitability. This study highlights the above-mentioned multifaceted factors affecting sustainable banking development. Unique Contribution: This study is beneficial in both theory and practice in sustainable banking development at commercial banks and today, ensuring profits and enhancing banks' reputation and operational capacity. Key Recommendation: From the research results, the authors proposed regulations and policies for sustainable banking development at commercial banks in the context of development and integration. This shows that sustainable banking development is not something that is too difficult, and it does not depend on the size of the bank, large or small, but is the result of a long-term vision and the right action strategy that the bank administrators implement.
