Analysis of Islamic Bank Financing Strategies to Create Green Banking (Case Study of BPD DIY Syariah)

Abstract

The issue of environmental degradation and pollution has become the center of attention in world economic forums since it is considered a problem with enormous negative impacts. The banking industry promotes "green banking," or the growth of environmentally friendly banks. This study analyzes Islamic Bank's financing strategies for creating green banking. This study uses a qualitative and descriptive analysis approach, using direct interviews with the bank BPD DIY Syariah employees. Meanwhile, data analysis uses data reduction patterns, presentation, and conclusion. The results show that the bank BPD DIY Syariah applies green banking indicators, including carbon emissions, green building, reuse/recycle/refurbish, and paperwork or paperless to create green banking. In addition, the bank BPD DIY Syariah seeks to mitigate risks in the social and environmental risk aspects of its financing distribution by paying attention to the ecological management efforts of prospective debtors and debtors, which can be seen from the fulfillment of environmental documents.