The Impact of Green Finance on the Sustainability Performance of the Banking Sector in Palestine: The Moderating Role of Female Presence

Abstract

This paper investigates the influence of “green finance” on the sustainability performance of banking institutions with a specific focus on the context of Palestine. A structured questionnaire was administered to gather data from a representative sample of 104 credit managers employed within Palestinian banking, utilizing descriptive statistics, structural equation modeling, and multiple regression analysis. This study examines the intricate interplay of the social, economic, and environmental facets of green financing and their impact on sustainability performance. Moreover, the study explores the potential moderating effect of female representation within financial institutions. The findings suggest that gender diversity and exclusivity significantly contribute to reinforcing the favorable association between green finance and sustainability performance. Integrating green finance into the strategic frameworks of financial institutions can yield environmental benefits and enhance both long-term and short-term sustainability performance, particularly in emerging economies such as Palestine. Ultimately, this study offers valuable insights into the evolution of green finance and its consequential effects on the sustainability performance of financial institutions in emerging countries.

Keywords

• green finance
• long-term sustainability
• short-term sustainability
• banking sector
• gender diversity