Green Finance and Environmental Performance: An empirical Evidence from Nigerian Banks

Abstract

Environmental and social problems such as ecosystem degradation, the effects of climate changeare negatively impacting economies around the world.This study, therefore, investigates the mediating role of green monetary policy on the relationship between green finance and environmental performance with specific reference to Nigerian banks. A purposive sample technique was adopted to select 150 senior managers of the selected banks in Southwest, Nigeria. The data collection instrument for the study was structured questionnaire designed for the study and the simple percentage was employed to describe the demographic characteristics of the respondents, while the Structural Equation Modelling was used to test the hypotheses. The results reveal that green lending, green investment, and green bonds have a positive association with environmental performance, but are insignificant. Evidence Further reveals that green training and green technology have a significant influence on environmental performance.It was also revealed that green monetary policy does not mediate between green lending, green investment, green bonds, green training, green technology, and environmental performance. Therefore, Nigerian banks should start pursuing a green qualitative mitigation program that will stimulate green investment by developing and applying methods to identify and measure climate-related risks for the sector.