Green Banking Practices by Financial Institutions: A Study on the Banking Industry of Bangladesh

DOI: https://doi.org/10.59321/BAUETJ.V4I1.15

AUTHOR(S)
A.K.M Mahfuj Ullah1,*

ABSTRACT
The concept of ‘green banking’ has a massive appeal to the global banking business. The paper depicts green banking practices in Bangladesh complied on secondary data. Green Banking, also referred as ethical or sustainable banking, is characterized as a means to conduct operations, improve banking technology, and secure the earth through preserving environment and maintaining corporate social responsibility. The principle is to furnish the banking business by applying green policies in operations and encouraging assistance, collaboration, and feedback from four key groups- customers, management, employees, and shareholders. It is a step towards the pursuit of economic growth in an environmentally sustainable manner by reducing paperwork and relying on electronic exchanges for job processing. Although it is relatively a new concept in Bangladesh, advanced countries have already started it. However, in developing countries like Bangladesh, there is way promoting sustainable development, as evidenced by almost Tk. 25,957.83 crore investment in green projects by banks in 2019. Recently, Bangladesh Bank has found formulating policies and strategies and allotting funds to green initiatives accelerating the insignificant growth rate. By following some special customized packages while investing in green projects, the desired green banking position can be achieved easily. According to the study, SCBs and SDBs’ green banking activities are completely lacking compared to PCBs and FCBs’ position.

Download Full Article