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Green Banking

In the last few years, the term green banking has become very popular. Like other institutions, banks also have liability towards the environment which they can perform by practicing green banking. In laymen's terms, green banking means practicing banking activities in such a way that it will not cause harm to the environment. Already the developed countries have started practicing green banking. Green banking can be practiced in two ways the first one is the traditional method that is reducing the paperwork and focus more on electronic banking process. The second one is providing environmentally responsible financing that is providing loans and finance to such organizations that are focusing on protecting the environment like solar power industries, building self-driven cars, industries that use renewable energy and works on reducing pollution. Like other developing countries, Bangladesh is also practicing green banking. Bangladesh Bank has also provided some guidelines for green banking. The banking sector is the backbone of the finance of a country. So they should play a vital role in protecting the environment and natural resources. It's their responsibility to minimize pollution. Green banking works on to create a favorable impact on the environment while considering the economic, legal and social factors. Bangladesh bank encourages all the banks to promote and introduce green banking and also has promised several initiatives for the banks who have practiced green banking seriously. The top ten banks, who have performed green banking actively, will have their name shown on the website of Bangladesh Bank and they can also enjoy some benefits like granting permission for opening a new branch. Our mother earth is facing more and more pollution and if we do not take any necessary steps immediately, then it will be impossible for us to live on the planet earth. On the recent COP-24 summit in Poland, representatives of  200 countries have agreed to reduce carbon emission and reducing the increase of temperature. So green banking needed to be promoted more in order to reduce pollution and maintain a sustainable environment. Both the traditional and non-traditional methods of green banking should be promoted more. All the scheduled banks should follow the policies given by the Bangladesh bank and act as per so.

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