Green Banking as an Innovative Benchmark for the Development of the Banking System Under the Conditions of Global Transformations

Abstract

The research aims to identify changes in the banking system of the Kyrgyz Republic, as well as the application of green banking and its promotion as an innovative benchmark. To conceptually understand the problem, the authors applied abstract-logical methods of comparison and generalizations to study and comprehend the current results of scientific research by scientists from around the world. The authors analyzed the time series of development indicators of the banking sector for 2017–2022. The information base was statistical information provided by the National Bank of the Kyrgyz Republic. The banking system of the Kyrgyz Republic is developing progressively positively, in which green principles are beginning to be used to support green initiatives. For green banking to fully function, it is necessary to create an efficient and secure payment system that would help stimulate environmentally responsible financial transactions. For this purpose, the use of advanced technologies (e.g., blockchain technologies) will contribute to the modernization of the payment system. The high degree of dollarization of the banking sector helps attract foreign investment and makes it possible to develop foreign capital, which reduces the independence of the banking sector and hinders the free choice and implementation of priority green projects. Currently, there is a trend of de-dollarization, which poses new challenges for the banking sector to find compromises with foreign partners.

Citation

Akylbekova, N.I., Duishenalieva, Z.T., Kuramaeva, E.D., Myrzakhmatova, Z.B. and Ashimbayev, T.A. (2024), "Green Banking as an Innovative Benchmark for the Development of the Banking System Under the Conditions of Global Transformations", Eshov, M.P., Abdurakhmanova, G.K., Burkhanov, A.U., Abdusalomova, N.B. and Ergasheva, S.T. (Ed.) Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS (Advanced Series in Management, Vol. 33B), Emerald Publishing Limited, Leeds, pp. 23-30. https://doi.org/10.1108/S1877-63612024000033B004