The Impact of Green Finance on Enhancing the Sustainable Performance of Yemeni Banks in the Capital Sana'a (An Applied Study)

Abstract

This study aimed to analyze the Impact of green finance—encompassing short-term, medium-term, and long-term green financing—in enhancing sustainable performance, as measured through three dimensions: efficiency and effectiveness, strategic financial planning, and sustainable financial integration. It further sought to assess the extent to which green finance practices and sustainable performance are implemented within Yemeni banks operating in the Capital Secretariat of Sana’a.The study adopted a descriptive-analytical research methodology. A structured questionnaire was employed as the primary data collection instrument, administered to a sample of (236) managers and department heads across six Yemeni banks that implement green financing policies. Participants were selected through stratified random sampling from a target population of (789) individuals. Data were analyzed using the Statistical Package for the Social Sciences (SPSS). Findings revealed that both green finance implementation and sustainable performance levels were relatively high. Moreover, a statistically significant yet weak positive relationship was identified between green finance and sustainable performance, with green finance accounting for approximately (0.2%) of the variance in sustainable performance. Based on these results, the study recommends enhancing awareness among customers and investors regarding the environmental and national economic benefits of green finance through targeted educational and outreach campaigns. Additionally, it advocates integrating sustainable performance into incentive structures and regular monitoring mechanisms by establishing clear, well-defined performance indicators linked to annual evaluations or managerial incentives within banks.