ASEAN Journal on Science and Technology for Development
Abstract
Economic growth strongly depends on financial stability, given that the financial sector conducts most transactions in the real economy. Financial instability causes banking institutions to be wary about backing profitable businesses, resulting in a reluctance to fund such activities. Green financing is one of the measures to minimize banking instability. In general, the role of green financing would be to mitigate climate change risk and control the environment. Numerous studies have been conducted on an empirical model of the relationship between climate change and the financial stability of banking institutions. However, little emphasis is placed on the context of adopting green financing. Therefore, this study aims to investigate the mediating role of green financing in the relationship between climate change and bank stability among the Tiger Cub Economies, which include Indonesia, Malaysia, Philippines, Vietnam, and Thailand. Using a dataset from 2010 to 2020 and following Baron and Kenny's (1986) approach, the data were analyzed via a panel data technique. The findings imply that green financing initiatives would maintain the banking sector to have a financial stability over time.
Keywords
Climate Change, Green Financing, Banking Stability
Publication Date
2024
Received Date
23-Oct-2023
Revised Date
2-Jan-2024
Accepted Date
28-Feb-2024
Recommended Citation
Abd Hishamuddin, Mohd Razuan; Bujang, Imbarine; Rimin, Flicia; and Mimma Kebahyang, Irma Febriana
(2024)
"A Beacon of Climate Change and Green Financing Toward Bank Stability Among Tiger Cub Economics,"
ASEAN Journal on Science and Technology for Development: Vol. 41:
No.
2, Article 10.
DOI: https://doi.org/10.61931/2224-9028.1581
Available at:
https://ajstd.ubd.edu.bn/journal/vol41/iss2/10