Impact of Green Banking Practice on Consumer Loyalty of Commercial Banks in Bangladesh

Abstract

This study investigates consumer perceptions of green banking practices and their impact on customer loyalty. To show the relationship between customer loyalty and green banking practice, green image has been used as mediating factor in this study. Data for this study were collected using a quantitative survey from 353 commercial banking clients in Bangladesh more specifically in Dhaka city. To examine the link between the research variables, the structural equation modelling approach (SEM) is applied. The findings of the structural equation modelling research revealed a straight and significant effect of green banking practice on green image and bank trust, but not on customer loyalty. The green image has a big impact on bank trust, but not on client loyalty. A considerable association exists between bank trust and client loyalty. Furthermore, green image mediates the association between green banking practice and customer loyalty, which is a promising indicator for the future.

Keywords:
Green banking, Green image, Bank trust, Customer loyalty, Sustainability