The Influence of Risk Profile, Good Corporate Governance, Earnings, and Capital on Green Banking Within Regional Banks in Indonesia

This research aims to analyze the assessment of bank health levels using the Risk-Based Bank Rating (RBBR) method, which includes Risk Profile, Good Corporate Governance, Earnings, and Capital in relation to the implementation of green banking practices. This research was conducted on regional banks that are members of financial services authority (OJK) in Indonesia, totaling ۲۷ companies that met the sample criteria. The research period is ۴ years from ۲۰۲۰ to ۲۰۲۳, resulting in a total of ۱۰۸ research samples. This study uses a Common Effect Model to test the hypothesis. The research results show that risk profile and earnings have a significant negative effect on the green banking. Meanwhile, good corporate governance does not have a significant effect on the green banking. Capitalization has a significant positive effect on the green banking. The study contributes to green banking literature by showing that external regulatory and stakeholder pressures are more influential than corporate governance in promoting green banking. It underscores capitalization as a key enabler and identifies profit orientation and risk aversion as barriers, highlighting the need for stronger institutional frameworks.

کلیدواژه ها:

capital ، Earnings ، Good corporate governance ، green banking risk profile