This study examines the impact of green banking frameworks on corporate lending and the subsequent alterations in corporate behavior. As financial institutions increasingly integrate environmental risk assessments (ERAs) into their credit evaluation procedures, borrowing firms face new strategic incentives. Using a mixedmethods approach, this paper evaluates data from 45 commercial banks and 300 corporate borrowers over a five-year period. The findings indicate that stringent environmental risk assessments significantly reduce access to capital for highemission firms while lowering borrowing costs for ecologically compliant enterprises. Consequently, corporate behavior shifts toward sustainable operations, increased green research and development investment, and enhanced environmental disclosures. The study concludes that green banking frameworks act as effective mechanisms for market-driven environmental governance. This study investigates the strategic intersection of sustainable finance and corporate debt by evaluating how green banking frameworks influence corporate lending dynamics and alter borrower behavior. As global financial regulators increasingly mandate the integration of Environmental, Social, and Governance (ESG) criteria into credit risk models, commercial banks are transitioning from passive financial intermediaries into active agents of environmental governance. Utilizing a mixedmethods approach, this paper analyzes panel data from 45 commercial banking institutions and 300 corporate borrowers over a five-year period to assess the financial and operational impacts of bank-enforced environmental risk assessments (ERAs). The quantitative results demonstrate a significant bifurcation in the credit market: high-emission, non-compliant firms face an average loan spread premium of 120 basis points and a 34% reduction in loan approval rates, whereas ecologically compliant enterprises benefit from preferential pricing and enhanced capital access. Qualitatively, semi-structured interviews with chief risk officers and corporate treasurers reveal that these financial pressures compel borrowing firms to execute structural behavioral shifts. These adjustments include a 42% average increase in green research and development (R&D) investments, enhanced corporate climate disclosures, and the systematic decommissioning of carbon-intensive assets to maintain creditworthiness. The findings conclude that green banking frameworks effectively internalize environmental externalities into corporate capital structures, proving that market-driven financial discipline is a powerful mechanism for accelerating the transition toward a low-carbon economy