Can Ethical Banking Promote Environmental Sustainability? A Literature Review

Abstract

This study aims to examine whether ethical banking can promote environmental sustainability. Ethical banks have emerged as a banking alternative to the traditional banks that have so far neglected the society and the environment. Alternatively, Ethical banks promote environmentally friendly projects on attractive terms. There has been limited interest in this topic in the eastern part of the world. This study is desk research, and literature from 1990 to 2019 were reviewed for the study. Consequent to the literature review conducted, it can be argued that ethical banks contribute to the sustainability of the environment. This research recommends the testing of these findings empirically in the eastern context. These findings can be critical to Banks, Financial Institutions and Policymakers to understand the damage caused to the environment and direct their operations to be more ethical and environmentally friendly.