| dc.description.abstract | Green credit has become an essential instrument in advancing Indonesia’s
sustainable development agenda, yet empirical evidence on the drivers of its
distribution remains limited. This study seeks to examine the determinants of green
credit allocation among Indonesian banks that implement green banking practices.
Employing unbalanced panel data from 34 banks over the 2018–2024 period, the
analysis utilizes a Random Effect Model selected through the Chow, LM, and
Hausman specification tests. The model incorporates ROA, Total Assets, CAR,
CIR, NPL, and GDP as explanatory variables. The empirical results reveal that
ROA and Total Assets exert a significant positive influence on green credit
distribution, whereas CIR demonstrates a significant negative effect. Conversely,
CAR, NPL, and GDP show no statistically significant impact. These findings
underscore the predominance of internal financial conditions over macroeconomic
factors in shaping banks’ green lending decisions within the Indonesian context. | en_US |
