IMPLEMENTASI GREEN FINANCE TERHADAP KINERJA BANK SYARIAH

This study aims to analyze the effect of green banking implementation on the performance of Islamic banks in Indonesia. The green banking variable is proxied by green finance and corporate social responsibility (CSR), while bank performance is measured using return on assets (ROA). This study also considers internal factors, including operational efficiency (BOPO), financing risk (NPF), and net financing margin (NFM), as well as macroeconomic factors, namely inflation and the BI Rate. The data used are secondary data obtained from the financial statements and sustainability reports of Islamic commercial banks in Indonesia for the 2019–2023 period. The analytical method employed is the Two-Step System Generalized Method of Moments (GMM) to address endogeneity issues and capture dynamic relationships among variables. The results indicate that green finance has an effect on the performance of Islamic banks. BOPO and NPF have a negative effect on ROA, while NFM has a positive effect. Inflation and the BI Rate also influence bank profitability. These findings suggest that the implementation of green banking needs to be supported by internal efficiency and stable macroeconomic conditions.