Sustainable Banking: Analyzing Pattern of Green Banking In Bangladesh

Abstract

The term Green Banking is a new concept in Bangladesh, though the idea is not new. It has shifted the profit maximization goal of banks to ‘planet, people and profit goal’. In Bangladesh, the banks are categorized as FCBs-Foreign Commercial Banks, PCBs- Private Commercial Banks, SCBs- State owned Commercial Banks, SDBs- the Specialized Development Banks. Bangladesh Bank – has issued the Green Banking Guideline in 2011 which is a mandatory policy guideline for all the scheduled Banks operating in the country. This study focuses on how the phase-wise action plan is applicable for all banks operating in Bangladesh are coping up to meet the target within the stipulated deadline. It is found that the SCBs and SDBs are showing constantly poor performance in adopting the idea. It is also mentionable that recently the focus is more on direct green financing to indirect green financing. Some banks are welcoming the idea of ‘going green’ whereas others are still in the dilemma in taking the challenge.

Keywords: Green finance, sustainability, environmental risk, online-banking, climate risk fund