Alishba Jamil2026-01-142026-01-142025https://escholar.umt.edu.pk/handle/123456789/18256This research shows how GBA is influencing Green Financing and Banks Environmental Performance. On the base of Institutional Theory, the study is looking how banks internal system is influencing sustainability and financial outcomes. To capture this green banking activities are studies across four dimensions: rank related practices, Bank operational related practices, Bank Customer related practices, and Bank personal related practices. Together these dimensions reflect how Bank embed environmental awareness in their daily operations policies, employee development, and interaction with customers. The study develops and tests several hypotheses to evaluate how these practices influence the flow of green financing and, ultimately, the environmental performance of banks. A quantitative research design was adopted, incorporating both primary and secondary data collected from selected commercial banks. Green financing was analyzed as a mediator, showcasing how internal eco-conscious practices translate into environmentally supportive financial mechanisms such as eco-loans, sustainable investments, and renewable energy financing. To ensure robust findings, the study controlled for bank size (using total assets) and profitability (measured by return on assets—ROA), allowing for a more accurate assessment of intentional green strategies over institutional scale or financial leverage. The results demonstrate that Green Banking Activities have a significant positive effect on the sources of green finance, which in turn enhance banks’ environmental sustainability performance.enThesis