IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

The Importance of Banking Efficiency in Green Finance and Climate Risk Management at the Level of Islamic Banks

The Importance of Banking Efficiency in Green Finance and Climate Risk Management at the Level of Islamic Banks
View Sample PDF
Author(s): Abdelkader Mohamed Sghaier Derbali (Applied College, Taibah University, Saudi Arabia)
Copyright: 2026
Pages: 18
Source title: Impacts of Climate Risk and Energy Consumption on Financial Markets
Source Author(s)/Editor(s): Abdelkader Mohamed Sghaier Derbali (Taibah University, Saudi Arabia)
DOI: 10.4018/979-8-3373-6766-8.ch008

Purchase


Abstract

This paper explores the role of banking efficiency in promoting green finance and climate risk management in Islamic banks. It comes in a context of increasing pressure on financial institutions to adopt sustainable practices, where Islamic banks operate at the intersection of religious compliance and environmental imperatives. The study uses a stochastic frontier analysis approach applied to a panel of Islamic banks operating in the member countries of the Organization of Islamic Cooperation. It measures banking efficiency and its influence on green commitments and climate risk management strategies. The results show that high bank efficiency is positively correlated with greater involvement in green finance and better resilience to climate risks. These efficient banks tend to adopt green practices more systematically and strengthen their environmental risk management systems. This research proposes an innovative approach by combining three dimensions rarely discussed together in the literature: banking efficiency, Islamic finance, and environmental sustainability.

Related Content

Asamoah Oppong Zadok. © 2026. 40 pages.
Pooja Dehankar, Kashvi Chaturvedi, Susanta Das. © 2026. 32 pages.
P. Selvakumar, H. Vidyalakshmi, R. Josphineleela, V. Vaissnave, T. Ragupathi, Raj Kumar, T. C. Manjunath. © 2026. 34 pages.
Eduard Babulak, S. N. Kumar, Neenu Rose Antony, Nikki John Kannampilly, Alan Biju, Albert Joji, Arunima Dilimone, Dejlo Shaju. © 2026. 26 pages.
Muhamad Rusliyadi. © 2026. 28 pages.
José G. Vargas-Hernández, Csongor Czipf, Absalón J. Salmerón-Zapata. © 2026. 32 pages.
Nilotpal Das, Argha Mandal, Atin Kumar. © 2026. 28 pages.
Body Bottom