Assessment of Green Finance Products Impacts on Bank Performance: A Study of Thai 3 Big Banks (2018-2022)
Keywords:
Bank’s Performance, EBITDA, Green Loans, ThailandAbstract
Thailand is a developing economic country in South East Asia, it has had
a high growth in economic prospects in recent years. In the modern world, green financial products have increased and caught the interest of investors. Banks in many countries have been generating green products seeking to improve their profitability and performance as well as improving the country’s environment, especially in Thailand. This research paper aims to focus on green loans and measurement of banks’ performance by looking at the EBITDA (Earmings Before Interest, Tax, Depreciation, and Amortizations), ratio of the three major banks in Thailand; namely, Kasikornbank, Siam Commercial Bank, and Bangkok Bank
where the data collected from each bank financial reports and some is calculated by hand such as Green Loan Ratio. Therefore, it is crucial to study how banks generate green loans to impact the banks’ performance, leading to further study to improve the green economy in Thailand. Using the data of three commercial banks from 2018 to 2022 as samples, the random effects model was used for correlation analysis. As a result, the study shows that there is a correlation between green loans and banks’ performance by looking at the EBITDA. The study could be expanded in the future and provide a contribution for the financial sector in Thailand in order to have more motivation playing in green financial
products.
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