RGEC AND GREEN BANKING: THE MODERATING ROLE OF ISLAMIC SOCIAL REPORTING
DOI:
https://doi.org/10.54783/8frh0067Keywords:
Bank Health, Green Banking, Islamic Social ReportingAbstract
“This research aims to analyze the effect of bank health on Green Banking using the RGEC (Risk Profile,
Good Corporate Governance, Earnings, and Capital) method, with Islamic Social Reporting (ISR) as a
moderating variable. A quantitative approach was applied, utilizing secondary data from the annual reports
and sustainability reports of 11 Islamic Commercial Banks in Indonesia from 2020 to 2024. The analysis was
conducted using Partial Least Square-Structural Equation Modeling (PLS-SEM) through SmartPLS 4 software.
The results show that, among the RGEC variables, only the Capital Adequacy Ratio (CAR) significantly
influences the Green Banking Disclosure Index (GBDI). In contrast, Non Performing Financing (NPF), Financing
to Deposit Ratio (FDR), Good Corporate Governance (GCG), Return on Assets (ROA), and BOPO were found to
have a non significant impact. Additionally, Islamic Social Reporting (ISR) did not moderate the relationship
between the RGEC variables and the GBDI.”
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