The Effect of Banking Activities on Greenhouse Gas and Carbon Emissions in OTS Member Countries

This study examines the impact of the financial sector on environmental sustainability in the member countries of the Organization of Turkic States (OTS). The aim of the study is to identify banking activities that affect greenhouse gas and carbon emissions in OTS member countries and to demonstrate the necessity of regulating these activities to reduce emissions. The data used for the study covers the period between 2015 and 2024 and includes data from five member countries. This data was obtained from the World Bank and EDGAR (Emissions Database) databases. The data analysis in the study was performed using EViews 13 (Quantitative Micro Software). The Panel Data Regression Method was used to determine the relationship between the series. The dependent variable in the study was greenhouse gas and carbon dioxide (CO₂) emissions, while the independent variables were the number of bank branches and ATMs and the volume of credit. In the banking sector, independent variables showing positive change over the years were found to directly affect greenhouse gas and CO₂ emission levels in a positive direction during the analyzed period. No significant relationship was found with the number of branches. Based on these results, it can be said that banks' credit and physical expansion have an environmental impact. Even if the banking sector follows environmentally friendly policies within the scope of sustainability, it should have a negative impact on emissions. The banking sector and policymakers need to take structural steps in sustainable credit policies, technological transformations, and green branch-ATM networks. The banking sector also has a role to play in helping countries achieve their emission targets. JEL Codes: G21, Q56, R59