THE IMPACT OF GREEN CREDIT ON THE FINANCIAL EFFICIENCY OF JOINT STOCK COMMERCIAL BANKS
DOI:
https://doi.org/10.62985/j.huit_ojs.vol26.no3E.660Keywords:
Performance, technical efficiency, Data Envelopment Analysis, Malmquist index.Abstract
Green credit plays a pivotal role in guiding and optimizing capital flows toward environmentally sustainable production and business sectors. This study evaluates efficiency levels and the impact of green credit on joint stock commercial banks from 2020 to 2024. Employing the DEA-Malmquist Total Factor Productivity (TFP) index and its decomposition components, the analysis measures technical efficiency and technological progress across 10 selected institutions. The results show that not all banks providing green credit have high total factor productivity (TFP). The results indicate that joint stock commercial banks utilize input resources relatively efficiently, as reflected by a high average technical efficiency index. The Malmquist productivity index is employed to examine changes in the productivity of joint stock commercial banks over time. The research findings indicate that changes in the Malmquist productivity index are primarily driven by technological change (techch).
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