Preprint Article Version 2 Preserved in Portico This version is not peer-reviewed

Green Finance During the COVID-19 Pandemic and Beyond: Implications for Green Economic Recovery

Version 1 : Received: 9 August 2021 / Approved: 10 August 2021 / Online: 10 August 2021 (08:56:44 CEST)
Version 2 : Received: 13 December 2021 / Approved: 16 December 2021 / Online: 16 December 2021 (12:36:55 CET)

A peer-reviewed article of this Preprint also exists.

Zheng, G.-W.; Akter, N.; Siddik, A.B.; Masukujjaman, M. Organic Foods Purchase Behavior among Generation Y of Bangladesh: The Moderation Effect of Trust and Price Consciousness. Foods 2021, 10, 2278. Zheng, G.-W.; Akter, N.; Siddik, A.B.; Masukujjaman, M. Organic Foods Purchase Behavior among Generation Y of Bangladesh: The Moderation Effect of Trust and Price Consciousness. Foods 2021, 10, 2278.

Journal reference: Foods 2021, 10, 2278
DOI: 10.3390/foods10102278

Abstract

The main purpose of study is to identify the impact of COVID-19 pandemic on the green financing of banks and non-bank financial institutions (NBFIs) in an emerging economy such as Bangladesh. Also, this study shows the green banking activities of the banks and NBFIs during the pandemic. To analyze the impact of the pandemic on green financing, secondary data were obtained from the quarterly and annual reports of Bangladesh Bank (BB) on green financing as well as the annual reports and websites of 61 banks and 34 NBFIs in Bangladesh for the period 2021–2019. Subsequently, the study deployed dependent t-test statistics, growth rate (year-on-year), descriptive statistics, relative percentage changes, and varying tables and graphs to analyze the obtained secondary data. The empirical findings revealed that during the COVID-19 pandemic, there was an increase in green finance for all banks and NBFIs compared to before the epidemic, indicating that the pandemic had no negative impact on the total green finance growth of all banks and NBFIs. On the other hand, compared to the pre-pandemic period, bank-wise growth in green financing was higher for state-owned commercial banks (SOCBs), specialized banks (SDBs), and private commercial banks (PCBs) but lower for foreign-owned commercial banks (FCBs) during the COVID-19 epidemic. This suggests that the pandemic does not affect the expansion of green finance by SOCBs, SDBs and PCBs but significantly impacted the growth of green financing by FCBs. Furthermore, the research findings showed that the total outstanding and classified loans within the green finance investment decrease for both banks and NBFIs during the COVID-19 pandemic. The results indicated that the Bangladeshi banks’ level of automation towards green banking were satisfactory during the pandemic. Therefore, major policy implications for the green economic recovery by the government, BB, and managers of the banks and financial institutions in emerging economies like Bangladesh were discussed.

Keywords

COVID-19; green finance; green banking; green economic recovery; financial institutions; Bangladesh.

Subject

SOCIAL SCIENCES, Finance

Comments (1)

Comment 1
Received: 16 December 2021
Commenter: Abu Bakkar Siddik
Commenter's Conflict of Interests: Author
Comment: In this version, we have modified the contents of the research methodology and updated the data as well as the analysis.
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