Unlocking Sustainability: Exploring the Nexus of Green Banking, Digital Transformation, and Financial Performance with Foreign Ownership Moderation

Unlocking Sustainability: Exploring the Nexus of Green Banking, Digital Transformation, and Financial Performance with Foreign Ownership Moderation | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Unlocking Sustainability: Exploring the Nexus of Green Banking, Digital Transformation, and Financial Performance with Foreign Ownership Moderation indra siswanti, Hosam Alden Riyadh, Yohanes Ferry Cahaya, Embun Prowanta, and 1 more This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-4593498/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 05 Nov, 2024 Read the published version in Discover Sustainability → Version 1 posted 29 You are reading this latest preprint version Abstract Banks, as institutions that are profit-oriented and play a role in development and the economy, must also pay attention to environmental and community aspects to maintain sustainability in the long term. Banking and the environment are two different things, even opposites. Banks are commercial entities, whereas the environment is not. Despite their significant differences, these two concepts interact as a sustainable chain, leading to the integration of environmental and social management aspects in financial reports, which are essential for achieving sustainability. McKinsey's 2020 suggests that digital transformation implementation can boost productivity and optimize banking capital and implementing digital transformation will reduce bank operational costs by at least 30 to 40 percent. This will certainly increase the efficiency of the banking sector itself. Therefore, the objective of this research is to empirically test and analysis the effect of green banking, digital transformation, asset quality, on the financial performance of commercial banks with foreign ownership as a moderator, and test and analysis the financial performance on sustainable business for commercial banks. This research conducted on commercial banks that classify bank groups based on core capital 3 and 4, which are listed on the Indonesia Stock Exchange, covering the period from 2017 to 2022. This research employed a saturated sample sampling technique, encompassing a total of forty-seven conventional commercial banks. Panel data regression analysis, a data analysis technique, employs three variables: the dependent variable, the independent variable, and the moderation variable. The research reveals that green banking and digital transformation significantly improve the financial performance of Indonesian commercial banks. In addition, asset quality, as measured by non-performing loans, does not affect performance. Whereas foreign ownership can strengthen the influence of green banking and digital transformation on financial performance, it does not moderate the influence of capital adequacy on financial performance. Finally, high financial performance positively impacts sustainable business, indicating that a bank's sustainability can be positively influenced by its financial performance. green banking digital transformation asset quality financial performance foreign ownership and sustainable business. Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Published Journal Publication published 05 Nov, 2024 Read the published version in Discover Sustainability → Version 1 posted Editorial decision: Revision requested 08 Aug, 2024 Reviews received at journal 06 Aug, 2024 Reviewers agreed at journal 06 Aug, 2024 Reviewers agreed at journal 05 Aug, 2024 Reviews received at journal 05 Aug, 2024 Reviews received at journal 04 Aug, 2024 Reviews received at journal 04 Aug, 2024 Reviews received at journal 04 Aug, 2024 Reviews received at journal 04 Aug, 2024 Reviews received at journal 04 Aug, 2024 Reviewers agreed at journal 02 Aug, 2024 Reviewers agreed at journal 31 Jul, 2024 Reviewers agreed at journal 31 Jul, 2024 Reviewers agreed at journal 31 Jul, 2024 Reviewers agreed at journal 31 Jul, 2024 Reviewers agreed at journal 31 Jul, 2024 Reviewers agreed at journal 30 Jul, 2024 Reviewers agreed at journal 28 Jul, 2024 Reviewers agreed at journal 28 Jul, 2024 Reviewers agreed at journal 27 Jul, 2024 Reviewers agreed at journal 27 Jul, 2024 Reviewers agreed at journal 25 Jul, 2024 Reviewers agreed at journal 25 Jul, 2024 Reviewers agreed at journal 16 Jul, 2024 Reviewers agreed at journal 16 Jul, 2024 Reviewers invited by journal 01 Jul, 2024 Editor assigned by journal 01 Jul, 2024 Submission checks completed at journal 28 Jun, 2024 First submitted to journal 17 Jun, 2024 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-4593498","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":328610424,"identity":"9aa2a4e4-a8d9-4f5d-8bfe-94d6590a837c","order_by":0,"name":"indra 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