Green banking practices: The impact of internet banking on bank profitability in Egypt

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Abstract

This is the first study to use a quantitative approach in examining the impact of internet banking implementation as a green banking practice on bank profitability in Egypt. Moreover, it is the first global study to differentiate the impact between basic and advanced transactional internet banking on bank profitability. A total of 20 banks operating in Egypt were sampled over two time periods: 2009–2018 and 2014–2018. Random effects generalized least squares (GLS) regression analysis and nonparametric analysis were used. Findings indicate that advanced transactional internet banking, as a green banking practice that contributes to the Egyptian sustainable development strategy (SDS), significantly impacts bank profitability after three or more years of implementation. This study’s results are consistent with the findings of other comparable research conducted in developed markets. The findings of this study provide practical implications for managers and policymakers.

Keywords: Green Banking, Sustainability, E-Banking, Internet Banking, Bank Profitability, Egyptian Banks

Authors’ individual contribution: Conceptualization — R.P. and B.E.; Methodology — R.P. and B.E.; Software — R.P. and B.E.; Validation — R.P.; Formal Analysis — R.P. and B.E.; Investigation — B.E; Resources — R.P. and B.E.; Data Curation — R.P. and B.E.; Writing — R.P. and B.E.; Visualization — R.P. and B.E.; Supervision — R.P.; Project Administration — R.P.; Funding Acquisition — R.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: N2, M1, M2

Received: 26.05.2022
Accepted: 12.09.2022
Published online: 14.09.2022

How to cite this paper: Pasha, R., & Elbages, B. (2022). Green banking practices: The impact of internet banking on bank profitability in Egypt. Corporate & Business Strategy Review, 3(2), 65–75. https://doi.org/10.22495/cbsrv3i2art6