Determination of Priority Factors for the Development of Green Banking Practices in Turkey with the Fuzzy DEMATEL Method

Abstract

The aim of this study is to determine the priority factors for the development of green banking practices  in Turkey. In this context, with the literature review, five different factors that could be effective on the  development of green banking activities were determined. After that, an analysis was carried out with  the fuzzy DEMATEL method to determine the importance weights of these criteria. The biggest  contribution of this study to the literature is the determination of more effective strategies for the  development of green banking activities. According to the results of the analysis, the diversification of  green financial products is the most important variable for the development of green banking  applications in Turkey. Considering the analysis results of the study, banks should first diversify green financial products to develop green banking practices in Turkey. This situation contributes to the fact  that banks can reach wider audiences. Thus, it will be possible to meet customer expectations for  different segments more easily. In this framework, banks should primarily offer “green loans” to finance  projects related to environmental sustainability.