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Green investment continues to expand in country

Published on: 10:19 pm - Friday | September 28, 2018

 

 

currentnews.com.bd

 

Investment in green initiatives showed continuous expansion as the country’s banks and financial institutions (FIs) have disbursed substantial low-cost loans to support eco-friendly industries, businesses and other projects.

The banks and FIs have also adopted green practices in their day to day business and long-term operations.

According to Bangladesh Bank (BB), investments with green initiatives have increased by 8.90 percent or Taka 2,145.35 million at the end of April to June quarter of 2018 compared to the previous January to March period.

The total amount invested as green finance increased to Taka 26,237.75 million in April to June 2018 quarter from Taka 24,092.40 million in January to March quarter.

Talking to BSS, a BB official said, 31 banks out of 57 and 10 FIs out of 33 have exposure in green finance in the reported quarter.

“The central bank issued a policy guideline for green banking in February, 2011. Under the guideline, all operating banks and FIs have introduced environment-friendly banking activities in the country,” he added.

He said 56 banks have at least one online branch and 46 banks have introduced internet banking facility till June, 2018.

The banks and FIs are now providing regular training to their staff on green banking, he added.

BB data shows that 32 banks have arranged 114 training programmes concerning green banking where the total number of participants was 3,860. On the other hand, six FIs have arranged six training programmes concerning green banking where the total number of participants was 147.

As per the central bank’s instruction, the official said, banks and FIs have formed a “Climate Risk Fund” by allocating 10 percent of their Corporate Social Responsibility (CSR) budget for this fund.

BB established a lending scheme namely “Financing Brick Kiln Efficiency Improvement Project”, supported by Asian Development Bank (ADB), to help reduce greenhouse gas emissions and refine particulate pollution from brick fields, the BB official said.

As per the quarterly report from April to June, BB is trying to play a significant role by monitoring the whole scenario and by taking appropriate policy initiatives.

“We can expect the outcome of these initiatives to be positive and anticipate more rigorous and effective performance of banks and FIs in mainstreaming green banking in future,” the report added.

Managing Director of the Modhumoti Bank Limited M Shafiul Azam said his bank is taking different initiatives to expand green banking.

“We are trying to finance in the eco-friendly industries, including auto-bricks,” he added.

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