Drawing upon stakeholder and signaling theory, this paper aims to examine the mediating role of customer perceived ethicality in green banking’s impact on trust and loyalty.
Using a quantitative research design, data were collected from 343 banking customers. The partial least square structural equation modeling was used to test the proposed model.
The findings revealed that green banking practices significantly enhance green trust and green loyalty. This positive relationship is mediated through customer perceived ethicality.
Banking industry can gain trust and build loyalty by emphasizing green banking practices and effectively managing customer perceived ethicality. The findings of this paper offer valuable insights for banking managers and policymakers seeking to strengthen trust and promote long-term loyalty.
This study is novel as it demonstrates the mediating role of customer perceived ethicality on the relationship between green banking practices, green trust and green loyalty, which prior studies ignored.
