Green Banking and Its Potentiality & Practice in Bangladesh

Abstract

Banks are financial institution which can play an outstanding role between sustainable economic growth and environmental protection in order to prove themselves as environment friendly and socially accountable institution. For promoting this there is nothing but "Green Banking" which is the most talked topic in the recent banking activities and responsibilities. Green Banking refers to the banking business conducted in selected area and technique that helps the reduction of carbon emission surround the world. To aid the reduction of carbon emission bank should finance green technology and pollution reducing sectors. Green finance is an integral part of Green banking that makes a great contribution to the transition to resource-efficient and low carbon industries. Green Banking is certainly a new initiative throughout the world. The leading bankers and entrepreneurs have come forward to protect human being from environmental disasters. In the context of Bangladesh, if we think about it, we will find the situation to be terrible. Our people have little awareness about environment pollution and they do not understand the severe consequences of this pollution which will create an unexpected trouble in the coming decades.

Impact of COVID-19 on Green Financial Practices of Banks and Financial Institutions in Bangladesh

“…Since the economy is associated with sustainable development, there is no way to deny the importance of banks and FIs because they are considered as the backbone of an economic system of a country; the proper functioning and progress of economic activities largely depends on how well and sustainably the financial systems work. The primary role of banks and financial institutions as intermediaries is to promote national savings and to play a pivotal role in balancing sustainable economic development and environmental conservation to establish themselves as environmentally friendly and socially responsible institutions (Faruque & Biplob et al, 2016).…”