Green Banking:

Green Banking defined as promoting environmental-friendly practices and reducing your carbon
footprint from your banking activities. Green banking thus involves a two pronged approach. Firstly,
green banking focuses on the green transformation of internal operations of all banks. It means all the
banks should adopt appropriate ways of utilizing renewable energy, automation and other measures to
minimize carbon footprint from banking activities. Secondly, all banks should adopt environmentally
responsible financing; weighting up environmental risks of project, before making financing decisions;
and in particular supporting and fostering growth of upcoming „green‟ initiatives and projects.

A Green Bank is dedicated public or non-profit finance entity designed to drive private capital into
market gaps.

 A finance institution dedicated to increasing and accelerating investment in clean power goods
and services.

 Its mission is to use finance tools to mitigate climate change.

 Unlike typical “banks” it does not take deposits, and its operations can be funded by
governments or charitable contributions or both.

 It may deploy capital from public or private sources, invest on its own or in conjunction with
private sector investors.

Products of green banking:

1. Sustainable banking

2. Ethical banking

3. Green mortgages

4. Green loans

5. Green credit cards

6. Green savings accounts

7. Green checking accounts

8. Green money market accounts

9. Mobile banking

10. Online banking

11. Remote deposit

12. Waste Management

13. Roof Gardening

14. Green Financing.

Importance of Green Banking operations:
1.Basically Ethical banking avoids as much paper work as possible and rely on online/electronic
transactions for processing so that you get green credit cards and green mortgages. Less paperwork
means less cutting of trees.

2. Creating awareness to business people about environmental and social responsibility enabling them
to do an environmental friendly business practice.

3. Use of online banking instead of branch banking saves time.

4. Green banks adopt and implement environmental standards for lending, which is really a proactive
idea that would enable eco-friendly business practices which would benefit our future generations.

5. When you are awarded with a loan, the interest of that loan is comparatively less with normal banks
because ethical banks give more importance to environmental friendly factors - ecological gains. Natural
resources conservation is also one of the underlying principles in a green bank while assessing
capital/operating loans to extracting/industrial business sector.

6. It creates a congenial atmosphere inside and outside the bank.

7. It considers the clients as its family members, and as such, guide and supervise the projects to reduce
pollution and thus implement scientific methods in the real sense by implementing environmental due
diligence (EDD) checklist.

Present Scenario of Green Banking in Bangladesh:

Banks' in-house green activities
1. Using e-statement for customers instead of paper statement.
2. Making online communications in the best possible manner.
3. Using more daylight instead of electric lights.
4. Using energy saving bulbs such as LED lights.
5. Video/audio conferencing instead of physical travel.
6. Conversion of bank's vehicles into CNG
7. Efficient use of printer cartridges, photocopy toner, office stationary etc.
Sharing electronic files, voice mail, and e-mail instead of paper memos.
Common use of table stationeries instead of individual use.
8. Use of papers on both sides.

Major challenges for green banking

There are six major challenges ahead for green banking in Bangladesh.

These are:
1. Coordination among all the concerned authorities for green economy.
2. Proper awareness and effective capacity building.
3. Immediate concentration on sector wise lending policies and procedures
4. Need for applying a quantitative approach for a more justified rating.
5. Shifting of different categories of industry (such as Garments, Textiles, and Tanneries) to a proper
location.
6. Awareness of the Top Management.
In fact, Green Banking practices in Bangladesh are on the rise. Banks have profound impact on the
harmonization process of environmental imbalance. Government as well as banks of Bangladesh should
take proper measures in respect of Green Banking to protect our environment from being spoilt.
Government should also encourage the general people about the green banking practices. The central
bank should supervise commercial banks whether they are practicing it. Every bank has to participate
and contribute to green banking practices today to ensure a green, sustainable and healthy environment
to live in.

Specific Findings
1. 45 banks have formulated policy for green banking
2. 46 banks have formed a Green Banking unit
3. 41 Banks have introduced a Green Office Guide
4. Environmental risk rating has been done for 13,779 projects.
5. 13,833 risk rated prefects have been financed.
6. 13, 07,479.64 million taka has been disbursed.
7. 212 Branches and 150 SME Units/ATM booths are powered by solar energy.
8. 37 banks are fully automated.
9. 3226 branches have been facilitated with online coverage.
 Assignment On
Green Banking in Bangladesh

Prepared For
Md. Alamgir Hossen
Assistant Professor
Course Instructor
Bank Management, Fin-303

Prepared By
Asrafuzzaman
ID 1907
BBA 25th Batch

Institute of Business Administration

Jahangrinagar University

Date of Submission
18th April, 2018