The Potential Contribution of Green Finance to Improving Financial Performance: A Case Study of Al Yaqeen Bank

Abstract

This research aimed to explore the potential of using green finance as a tool to improve the financial performance of Libyan commercial banks. A descriptive-analytical approach was employed to analyze and test the hypotheses, utilizing a systematic questionnaire administered to a sample of department managers and section heads at Al-Yaqeen Bank. The research is significant as it is a novel study examining the relationship between green finance and the financial performance of the bank under investigation. The research yielded several key findings, including: weak laws, regulations, and legislation governing green finance, and a lack of banking awareness among bank employees. Based on these findings, several recommendations were proposed, most notably: addressing the weakness of the legislative frameworks for green finance in Libya and improving institutional awareness through training and development of staff. This research also represents a valuable contribution by offering practical suggestions for Al-Yaqeen Bank and providing a guiding framework for policymakers, including modern indicators designed to transform existing challenges into opportunities and gains in the transition towards sustainable green finance.