CATHOLIC UNIVERSITY OF CENTRAL AFRICA

CATHOLIC INSTITUTE OF YAOUNDE

FACULTY OF SOCIAL SCIENCES AND MANAGEMENT

Academic Year: 2024 – 2025

ASSESSING THE DETERMINANTS OF FINANCIAL

INSTITUTIONS INTENTIONS TO ADOPT GREEN BANKING
IN CAMEROON

Presentation of a Research Project Topic Proposal written with a view of obtaining a

Master’s degree in Financial Economics and Banking

By

BISSA ATANGANA Orlane Magalie

Masters 2 in FINANCIAL ECONOMICS AND BANKING

Under the tutorship of…

March 2025
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 TABLE OF CONTENT
CHAPTER ; GENERAL INTRODUCTION .................................................................... 4
Background of the Study .............................................................................................. 4
Research problem ........................................................................................................ 4
Research objectives ..................................................................................................... 5
Research Questions...................................................................................................... 6
Research Hypothesis.................................................................................................... 6
Significance of the Study............................................................................................... 7
Academic Contributions .............................................................................................. 7
Practical Implications for Financial Institutions .......................................................... 7
Societal and Environmental Benefits .......................................................................... 7
Policy Implications ...................................................................................................... 7
Delimitations of the Study ............................................................................................ 7
Definition of Terms ....................................................................................................... 8
CHAPTER TWO; LITERATURE REVIEW .................................................................. 10
Conceptual Literature................................................................................................. 10
Theoretical Literature................................................................................................. 10
Empirical Literature ................................................................................................... 11
CHAPTER THREE; RESEARCH METHODOLOGY.................................................. 12
Research Design........................................................................................................... 12
Area of Study ............................................................................................................... 12
Study and Accessible Population ............................................................................... 13
Sample Size and Sample Technique .......................................................................... 13
Instruments for Data Collection (validity, reliability and administration) ........... 13
Methods of data analysis ............................................................................................ 15
Ethical Consideration ................................................................................................. 15
CHAPTER FOUR; PRESENTATION AND INTERPRETATION OF RESULTS..... 16
Tables and Charts ....................................................................................................... 16
Descriptive statistics .................................................................................................. 16
Regression and Correlation Results ........................................................................... 16
Graphs .......................................................................................................................... 16
Narrative Interpretation ............................................................................................. 17

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 Key Themes from Interviews ..................................................................................... 17
Conclusion........................................................................................................................ 17
References .................................................................................................................... 17

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 CHAPTER : GENERAL INTRODUCTION

A. Background of the Study

Green banking refers to environmentally sustainable banking practices that promote
responsible investment and support eco- friendly intiatives. The Reserve Bank of India
defines green banking as a term referring to practices and guidelines that make banks
environmentally responsible and socially conscious. Hence, the adoption of green banking
by financial institutions involves implementing policies and strategies that align banking
operations with environmental goals. Bihari and Pandey (2015) describe green banking
adoption as the transition from traditional banking towards eco-friendly financial services
such as; green loans or again investment in renewable energy projects.
The global financial sector is undergoing a transformation, with an increasing emphasis on
sustainable and environmental banking practises. Banking sector is one of the oldest industries of
the world. The earliest evidence have been traced since 2000BC (Goyal and Joshi 2011). At this
time, banking sector was a major part of capitalist system, focusing only on capital accumulation
and profit gaining. According to stakeholder approach, an organisation exists for the benefit of
various stakeholders. (Clifton and Arman 2011). In the 20th century, stakeholders started realizing
that environmental degradation and natural resources degeneration are the greatest externalities
being produce by organizations. This resulted to an increasing stakeholder pressure on organization
towards reducing their adverse environmental impact.

Banking emerged in Mesopotamia, Egypt, Greece and Rome involving money

lending, deposits and foreign exchange.
Medieval to Early Modern Banking (1400-1800) equally increase where the rise of
commercial banks in Europe, including the establishment of central banks.
Modern banking (19-20 century) also led to the expansion of global banking with
technological advancements, leading to digital banking and increase financial services and
growing banking in 21st century led to growing concerns about climate change and
sustainability led to green banking initiatives with financial institutions adopting eco-
friendly policies.
Today, while still in the early stages, Cameroonian banks are gradually integrating
green finance due to regulatory pressures, environmental awareness and international
trends.
In many developing economies, including Cameroon, the adoption of green
banking services remains limited despite the increasing awareness of environmental
challenges. Cameroon faces numerous environmental issues such as; pollution,
deforestation, and climate change impacts which could be reduced through sustainable
financial practices.
Research problem

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This study aims to identify and analyze the determinants such as; regulatory frameworks,
organizational culture, financial incentives and stakeholder pressure that influence
financial institutions intention to embrace green banking. Financial institutions have all the
potentials of playing a crucial role in this transition by integrating green financial strategies.
Even though green banking is beneficial to financial institutions, they may be hesitant to
adopt such practices due to several factors. They include;
- Regulatory and Policy Framework
Cameroon lacks comprehensive frameworks or incentives that mandate banks to
adopt sustainable practices. Even though some environmental regulations exist,
enforcement remains inconsistent, making it easier for banks to continue their
traditional lending practices. In some countries, government offer funding to banks
investing in sustainable projects. The absence of such encouragement in Cameroon
discourages financial institutions from prioritizing green finance

- Stakeholder Influence
Many consumers and businesses in Cameroon are not aware of green banking
practices and their benefits. Due to this, there is little demand for green loans,
savings accounts or again sustainable investment options. Unlike in some countries
where central banks and global financial organizations push for sustainable
banking, Cameroon`s financial sector lacks strong regulatory pressure to adopt
green banking.

- Limited Access to Green Banking Technologies

Many banks in Cameroon still relies on traditional banking systems with limited
green financing solutions. The transition to block chain technology for
sustainability is slow.

- Institutional and Organizational Factors

Financial institutions in Cameroon have established operational models and may
resist change due to lack of expertise or awareness of green banking benefits.
Equally, the adoption of green banking depends on the willingness of the top
management to prioritize sustainability. Without a strong push from leadership,
banks are unlikely to invest in green banking issues

- Economic and Financial Considerations

Banks may view green banking as risky, especially where renewable energy
projects and sustainable businesses are still emerging. The lack of proven success
stories in Cameroon make banks hesitant to invest. Equally, many Cameroonian
banks prioritize short-term profitability over long-term sustainability.
Research objectives

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 The research objectives of this study will aim to assess the key determinants
influencing financial institutions intention to adopt green banking in Cameroon. By
identifying the various factors, the research will provide how the financial institutions can
transit towards sustainability, the role of government policies and the economic feasibility
of green banking in the country. It will be important to align Cameroon`s financial sector
with global sustainable banking trends. To assess these key determinants influencing
financial institutions, the specific objectives will be fulfilled. They include;
- To assess the role of the government policies and frameworks in promoting or
adopting green banking among financial institutions in Cameroon
- To evaluate the economic and financial constraints that prevents banks from
integrating green banking practices including perceived cost as well as profitability
concern.
- To investigate the influence of various stakeholders like the government,
consumers, investors or international organization on the willingness of banks to
implement green banking

Research Questions
Regarding the objectives above, the main research question will be “what are the
main determinants influencing financial institutions adoption of green banking in
Cameroon?”. By asking these questions, the study will perceive the following research
questions;
- How do regulatory policies influence financial institutions decisions to adopt green
banking?
- What financial incentives drive financial institutions to implement green banking
initiatives?
- To what extent do stakeholders (customers, investors, regulators) influence green
banking adoption?

Research Hypothesis
The study main research hypothesis aims to test the relationships existing between
various determinants and financial institutions intention to adopt green banking practices
in Cameroon. A test of significance would be conducted to analyse the study. Where, the
specific hypothesis, will be presented below;
H1 which is the alternative hypothesis will represent how the adoption of green banking
practices by financial institutions in Cameroon is significantly influenced by its
determinants. That is,
- The adoption of green banking by financial institutions is influenced by regulatory
framework,

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 - The adoption of green banking by financial institutions is influenced by financial
incentives
- Stakeholders influences financial institutions to adopt green banking

B. Significance of the Study

Academic Contributions
- This study will be significant for several purposes. Firstly, the study will contribute
to the existing body of knowledge on green banking, precisely in the context of
developing countries like Cameroon, where research on this subject are still limited.
- It will equally serve as a reference for future researchers interested in sustainable
banking and environmental finance
Practical Implications for Financial Institutions
- The study will help banks and financial institutions to develop strategies for a fluent
integration of sustainability in their daily operations
- It will highlight the potential benefits of green banking such as; risk mitigation,
improved reputation, long-term profitability.
Societal and Environmental Benefits
- The study aligns with global efforts to combat climate change, environmental
degradation and deforestation through responsible financial practices.
- Financial institutions will embrace sustainable banking initiatives that promote eco-
friendly investment as well as responsible lending practices.
Policy Implications
- Financial regulators will understand the need for green incentives in the banking
sector
- The study will equally provide valuable insights for policymakers, banks and
regulatory authorities on how to create an enabling environment for the adopting of
green banking

C. Delimitations of the Study

- The study is limited to Cameroon and does not take in to consideration other
African countries.
- The study will focus only on financial institutions excluding other industries
involve in green financing
- While the study explores the intentions of financial institutions, it does not directly
measure the profitability of green banking

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 D. Definition of Terms
Green Banking – A sustainable banking approach integrating environmental
considerations in to financial services and operations
Sustainability – The ability to meet current financial and environmental needs without
compromising future generation resources
Financial institutions – Organizations offering financial services, including banks,
microfinance institutions and investment firms
Determinants – Factors influencing financial institutions decisions to adopt green
banking such as; regulations, corporate responsibility etc.
Financial Constraints – Challenges such as high cost, lack of incentives that limit
banks from adopting green banking
Institutional Commitment – They are financial institutions internal policies, culture
which are driven towards sustainability and environmental responsibility.
Technological Infrastructure – They are digital banking systems that supports
sustainable banking operations
Regulatory Frameworks – Laws and policies established by the government or central
bank to oversee banking activity

E. Presentation of Chapters
This dissertation is presented in the following manner;
Chapter 1: General Introduction
This chapter provides the overview of the research, including the background, research
problem, research objectives, hypothesis and the dissertation structure
Chapter 2: Literature Review
The chapter will outline existing empirical literature of financial institution to adopt green
banking initiatives. As well as theoretical and conceptual review
Chapter 3: Research Methodology
This chapter will outline the research design, methods, population, sampling techniques
and instruments that will be use for the collection of my data.
Chapter 4: Presentation and Interpretation of Results
The chapter will present the results of the hypothesis, regression and equally the correlation
analysis.

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Chapter 5: Conclusion and Recommendations
This chapter will summarize the essay on how I intend to carry on my dissertation and
possible recommendations for future researchers on my topic

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 CHAPTER TWO: LITERATURE REVIEW
Several authors have addressed the issue of green banking adoption from different
perspectives, highlighting its determinants and challenges in various economic and
regulatory contexts. Emphasizing the role of regulation, competition, and market
dynamics. These authors have proposed different frameworks and definitions for
understanding the importance of green banking in both developed and developing
countries. Their perspectives are being classified below in four main categories. Which are;

A. Conceptual Literature
The conceptual literature here are theories, models and concepts that provide a
framework for understanding my topic.
SAA Bukhari, Amran and Hashim (2019), define green banking adoption as a
combination of financial and legal mechanisms designed to foster sustainability. Their
theoretical framework presents green banking as a systemic approach. That is, it integrates
multiple stakeholders in to a unified effort towards environmental protection and financial
sector innovation. Their approach suggests green banking not only as a corporate social
responsibility initiative but necessary adaptation to global financial and economic
challenges.
Yadav and Pathak (2013) take a complementary but distinct perspective, arguing
that green banking serves as strategic response to environmental pressures. They mainly
focus on addressing climate risks and the balance between financial and environmental
interests.
According to Joseph, the concept of green banking is explored as a strategic tool for
promoting environmental sustainability. He highlights that banks and financial
intermediaries play a crucial role in supporting sustainable development. His key concepts
is based on eco-friendly financial practices and adoption of sustainable investment.

B. Theoretical Literature
Theoretical literature helps establishing the conceptual framework by grounding the
research on different models and theories used in explaining the adoption of green banking
by financial institutions.
The adoption of green banking can be understood by different theoretical
perspectives such as the theory of planned behavior developed by Ajzen in 1991, which
suggest that institutions intention to adopt green banking relies on three main factors.
Firstly, there is attitude which perceives benefits of green banking such as; cost saving,
reputation enhancement etc. adding to this, there are subjective norms such as; pressure
from financial institutions and finally, perceived behavioral control like availability of
resources, technology and expertise.
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 The Institutional Theory by DiMaggio and Powell (1983) portrays that financial
institutions adopt green banking due to conceive pressure like regulatory frameworks,
normative pressure e.g environmental groups, professional association, and mimetic
pressure where banks copy leading institutions that successfully adopted green banking
initiatives.
Barney (1991) from the journal of management developed the resource-based
view which suggest that financial institutions adopt green banking if they have the
necessary tangible and intangible resources. According to him, institutions with financial
capital, technological capabilities and skilled personnel are more likely to integrate green
banking practices successfully.
According to Freeman who developed the Stakeholder theory in (1984), financial
institutions must consider the interests of various stakeholders, including the government,
investors, and customers. The demand for sustainable banking from these groups
influences banks intentions to adopt green banking.

C. Empirical Literature
The empirical studies permit to analyse the factors influencing financial institutions
decisions to integrate environmentally sustainable banking practices. Bahl (2012) in his
article “The role of green banking in sustainable growth” highlights that compliance with
green banking policies enhances financial institutions reputations and increases investment
confidence.
Saroni, and Hossain examines the policy initiatives of Bangladesh bank in
promoting green banking and the adoption of these policies in scheduled banks. It put an
emphasis on regulatory framework, including incentives for green banking practices. Their
findings identify gaps in policy execution and recommends stronger enforcement and
monitoring mechanisms to enhance green banking adoption.
Green banking initiatives has also been analyzed by Jillani and Chaudhry in (2024).
The research emphasizes the importance of strategic stakeholder engagement and policy
alignment for enhancing benefits of green banking in developing countries. They illustrate
how stakeholders contribute to the adoption of green banking which at the same time boosts
the banks market reputation and long-term profit.
The literature on green banking adoption highlights a complex interplay of external
and internal factors that influence the decisions of banks to implement environmentally
sustainable practices. However, while significant progress has been made in understanding
the determinants of green banking adoption, there remain gaps regarding the specific
challenges faced by different types of financial institution and the impact of technological
innovations.

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 CHAPTER THREE: RESEARCH METHODOLOGY
This chapter outlines the research methodology that will be adopted in the study,
including the research design, data collection methods, sampling techniques, and data
analysis procedures. The research is epistemologically base on positivism, as it aims to
identify objective factors influencing green banking adoption using empirical data. The
study adopts structured approach to ensure reliability and validity of the findings.

A. Research Design
This study employs mixed-methods research design. It integrates both quantitative
and qualitative methods to provide a comprehensive understanding of the factors affecting
green banking adoption. Given the complexity of sustainability-related financial decisions,
this approach allows for an in-depth analysis that captures both measurable trends and
subjective perspectives from financial institutions. For quantitative method, it will be
focusing on collecting and analyzing numerical data to identify patterns, trends and
correlation in green banking adoption. A structured survey will be use to gather information
from employees of financial institutions like bank managers. This data will provide insights
to the extent to which various factors such as: regulatory requirements or again financial
incentives affect the likelihood of adopting green banking initiatives. For qualitative
research, since green banking adoption is influenced by institutional policies, leadership
perspectives and regulatory frameworks, this method will help capture deeper insight into
decision making process. This will be done through interviews with key stakeholders such
as policymakers. The mixed method will therefore help in identifying statistical
relationship between the determinants of green banking adoption, provide actionable
insights in to how financial institutions can enhance their sustainability efforts, compare
variations of green banking adoption across different financial institutions (commercial
banks vs. microfinance institutions) and capture the perspectives of the industry
professionals on the challenges and benefits of green banking.

B. Area of Study
The research is conducted in Cameroon, where financial institutions are at different
stages of green banking adoption. This location is because there is an increasing demand
from customers and investors for sustainable financial products, requiring banks to rethink
their strategies. Equally, International commitments such as the UN sustainable
development goals are pushing banks to adopt and integrate green finance in to their
operations. The study focuses on a diverse set of financial institutions broadly divided in
to 4 for comprehensive analysis. These institutions are; Commercial banks, Microfinance
institutions, Investment banks or asset management firms and lastly, the central bank. The
selected area of study provides a rich environment due to; government regulations and
policy frameworks encouraging green finance practices, diverse banking institutions that

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provides a varying level of commitments to sustainable banking and a mixed of developed
and emerging financial markets allowing comparisons in green banking adoption rates and
challenges.

C. Study and Accessible Population

The study population encompasses financial institution employees, who are
involved in the implementation, decision making and management of green banking
policies and initiatives. Such as sustainability officers, environmental managers,
compliance officers, risk managers, and stakeholders. Where as the accessible population
is the study population that will be practically reached for data collection. They include;
employees of financial institutions or again institutions with existing or developing green
banking policies.
D. Sample Size and Sample Technique
For the quantitative aspect, the target population consists of employees working in
financial institutions (commercial banks, microfinance institutions, and investment firms).
The quantitative sample size will be determine using the Yamane’s formula:
n = N % 1+N(e)
where;
n = sample size
N = population size (total employees targeted in financial institutions)
e = margin of error which is usually 5%
Whereas, for qualitative sample size a smaller or more focused sample will be use.
The study will conduct in-depth interviews with 15 to 20 stakeholders.
Two sample techniques will be use. The stratified random sampling which will be
use to ensure proportional representation from different categories of financial institutions
and the purposive sampling will be use for qualitative interviews where only informants
with specialized knowledge in green banking initiatives will be taken in to consideration.
The selection criteria will include; at least 3 years in green banking finance and employees
from financial institutions that have adopted or are in the process of adopting green banking
initiatives.

E. Instruments for Data Collection (validity, reliability and administration)

The data collection instruments will include;

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 1. Primary Data
- Structured questionnaire and semi structured questionnaire: The
questionnaires will be use to gather quantitative data from bank managers, financial
analyst and policy makers. It may include; demographic section (age, gender,
position etc), adoption intention (likelihood of implementing green banking
initiatives), likert- scale items (e.g 1- strongly disagree to 5- strongly agree)
- Interviews: semi structure interviews will equally be conducted with key
stakeholders like government officials, sustainability officers which will provide
deeper insights in to challenges, motivations and policies affecting green banking
adoption
- Focus Group Discussion: where I will bring together financial professionals to
discuss green banking perceptions can offer collective insights in to industry trends
and barriers

2. Secondary Data
Reviewing reports, policies, financial statement and regulatory frameworks from
different financial institutions like; micro finance, commercial banks, central banks will be
analyzed in order to assess de determinants of green banking adoption.
3. Validity of Instrument
To ensure the validity of instruments, a study will be conducted with a small sample
of financial institution employees, allowing for revisions based on feedback regarding
clarity and relevance.
The instruments will be aligned with established theories such as the Technological
Acceptance Model (TAM)
4. Reliability of Instrument
The reliability of the questionnaire will be tested in order to ensure internal
consistency, while qualitative data. It will be verified through accuracy of transcribed
responses.
The reliability of the instruments will also be assessed using the test-retest method,
where the same instrument will be administered to a small group at two weeks interval to
check the stability of the responses
5. The administration of instruments
It will involve distributing the surveys through mail to employees engaged in green
banking, who are not easily accessible in financial institutions. To maximize response rate,
reminders will be sent and confidentiality will be assured to encourage honest responses.
Qualitative interviews will be conducted in person depending on the participant
availability and will be recorded (with their consent) for accuracy in data analysis.

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 F. Methods of data analysis
The methods under quantitative data analysis, will be;
I. Data cleaning and preparation in order to avoid missing values that could distort
the results. This will be done by checking incomplete responses
II. Descriptive statistics such as mean and frequencies will be use to summarize
the general characteristics of the survey respondents. Such as their roles within
the institution and the type of institution they belong to. It will provide a clear
picture of the institutional characteristics of the participant
III. Inferential statistics methods will be employed to assess the relationship
between the determinants.
Statistical software such as STATA will be used for these analyses, providing insights
in to significance and strength of the relationships among identified factors
Under qualitative data analysis,
IV. Coding and Categorization will be use. The codes will be both deductive based
on theoretical framework and inductive base on emerging patterns in the data
V. Transcription and data familiarization where interviews will be transcribed and
transcripts will be reviewed multiple times to gain a clear understanding of data.
VI. Theme development where related codes will be group in to broader themes.
The themes will reflect the most significant factors identified in the interviews.
VII. The final step will involve interpreting patterns and the relationships within
themes to generate insights in to drivers and barriers to adopting green banking
initiatives. This will be done by comparing responses across different
institutions.

G. Ethical Consideration
For this study, adherence to ethical principles will safeguard the rights and wellbeing
of participants. Where by, informed consent will be obtained from all participants and
confidentiality and anonymity will be maintained
Participant will be informed that they have the right to withdraw from the study at any
time without penalties

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 CHAPTER FOUR: PRESENTATION AND INTERPRETATION
OF RESULTS
This chapter presents the results of the study, interpreting the data collected from
respondents to assess the determinants of financial institution intentions to adopt green
banking initiatives in Cameroon. These results will be presented and interpreted in the
following formats to ensure clarity and accessibility:
Presentation of Variables
The study aims in assessing the determinants of financial institution intention to
adopt green banking in Cameroon, there will be two variables which are: the dependent
variable and the independent variable
1. Dependent variable
The dependent variable here is the intention to adopt green banking initiatives. This
represents the willingness of financial institutions to adopt green banking practices.
2. Independent variable
The independent variables here are the determinants. Which are the factors
influencing financial institutions. They include; regulatory policies, financial incentives
and stakeholder influence
The results of the study will be presented and interpreted in the following structure:
A. Tables and Charts
- Descriptive statistics
To summarize key demographic data and trends, tables and pie charts will be used.
This will display information such as;
- The distribution of financial institutions by type (commercial banks, investment
firms, microfinance institutions)
- The proportion of institutions that have adopted green banking initiatives versus
those that have not
- Levels of awareness and engagement with sustainable banking practices

- Inferential Statistics: Regression and Correlation Results

These results will be display using tables too to show coefficients and significance
level which indicates the strength and direction of relationships between dependent and
independent variables.
B. Graphs

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 They will be used to visually illustrate the relationships between variables, such as;
the impact of financial incentives on the likelihood of adopting green banking practices. It
will help in visualizing patterns in data and trends.
- Bar chart will be use to compare the adoption rates of green banking across different
types of financial institutions e.g a bar chart showing the percentage of commercial
banks, microfinance institutions that have adopted green banking
- Pie chart will be use to display proportions, such as percentage of institutions that
are aware of green banking initiatives versus those that are not
- Scattered plot will equally show the relationship between regulatory pressure and
green banking adoption. If there is a strong correlation, the points will align along
an upward-sloping trend line

C. Narrative Interpretation
The results will be presented too in a narrative format to connect statistical findings
with real world implications. They will be link to research questions and hypothesis,
explain why certain variables are significant and others not, compare findings with existing
literature to validate or challenge previous research and discuss unexpected results and
possible reasons for deviation of prior studies
D. Key Themes from Interviews
Themes discussed during interviews will be presented in a summary table along
with illustrative statements that will reflect the participants views on challenges,
motivations and policies impacting green banking.

Conclusion
The study will summarize the main findings, addressing how the research questions
have been answered and whether the hypothesis were supported. The conclusion will
reflect on the significance of the determinants of green banking adoption and their
implication for financial institutions and related stakeholders. Key insights from both
quantitative and qualitative analysis will be discussed, with recommendations for financial
institutions and suggestion for future research topic.
References
- Ajzen (1991). The theory of planned behavior. Organizational Behavior and
Human Decision processes 50(2), 179-211
- DiMaggio, P.J and Powel, W.W (1983). “The iron cage revisited: institutional
isomorphism and collective rationality in organizational fields”. Published in
American Sociological Review 48(2), 147-160

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- Barney J (1991). “Firm resources and sustained competitive advantage”.
Published in Journal of Management, 17(1), 99-120
- Freeman, R.E(1984). Strategic Management; A stakeholder approach. Pitman
- Bahl,R (2012). Public Finance; A contemporary application from theory to policy.
M.E sharpe.
- “Advancing green finance; A Review of climate change and Decarbonization”
published in peer-reviewed finance journal (2023)
- Bihari, S.C and Pandey B (2015). Green banking in India. Journal of Economics
and International Finance, 7(1), 1-1

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