Sustaining eco-friendly through green banking Role of green banking to Sustaining eco-friendly

Abstract In a globalised economy, the industries and firms are vulnerable to stringent environmental policies, severe law suits or consumer boycotts. Since banking sector is one of the major stake holders in the Industrial sector, it can find itself faced with credit risk and liability risks. Further, environmental impact might affect the quality of assets and also rate of return of banks in the long-run. Thus the banks should go green and play a pro-active role to take environmental and ecological aspects as part of their lending principle, which would force industries to go for mandated investment for environmental management, use of appropriate technologies and management systems. This paper explores the importance of Green Banking, green banking products and providing banks in India. However, we find that there has not been much initiative in this regard by the banks and other financial institutions in India though they play an active role in India¶s emerging economy. Therefore, we suggest possible policy measures and initiative to promote green banking in India. Key words: Green bank, environment and eco friendly. Introduction The term "Green Banking" is being heard more often today as more Americans look for ways in which they can help the environment. While green banking can encompass a wide variety of banking services or policies, many banks are actively promoting their online banking services as a form of green banking. The environment and the banking industry can both benefit as more bank customers start to use the online banking services that are available. Benefits of online banking include less paperwork, less mail and less driving to branch offices by bank customers, which all have a positive impact on the environment. Interestingly, online banking can also increase the efficiency and profitability of a bank. A bank can lower their own costs that result from paper overload and bulk mailing fees if more of their customers use online banking. Green banking also can reduce the need for expensive branch banks. Why green bank is necessary

Banks that offer rate incentives on CDs. energy-saving improvements to their house. solar panels. money market accounts. A truly green bank can reduce their carbon footprint by building more efficient branches. Banks can also support eco-friendly groups. Green Mortgages: Green mortgages allow home buyers to add as much as an additional 15% of the price of your house into your loan for upgrades including energy-efficient windows. Banks that go to these significant lengths to be eco-friendly are a little more difficult to find than the banks that claim to be green by merely offering online services. online savings accounts and checking accounts for online banking also help the green banking cause by rewarding online banking customers. The Energy Efficient Mortgage (EEM) is a type of HUD-approved green mortgage that will credit you for your home¶s energy efficiency in the mortgage itself. Green banking products and providing banks Green Loans: Wainwright Bank Borrowers needing to finance an energy efficient home improvement can find a reduced home equity loan rate from Wainwright Bank. implementing more energy-efficient operational procedures. These cards offer an excellent incentive for consumers to use their green card for their expensive purchases. Imagine the millions of dollars that could be raised for environmental groups if green credit cards really took off. If you are undertaking an energy-saving house project. Banks offering these green mortgages will give qualified-HUD borrowers the opportunity to finance cost-effective. A 0. Green Credit Cards: A green credit card allows cardholders to earn rewards or points which can be redeemed for contributions to eco-friendly charitable organizations. offering transportation services for their employees and carefully screening their lending in environment-sensitive industries.Banks can do much more to help the environment than just promote online banking. shop around for a bank that will offer a great deal on a green mortgage. It take a little bit of an incentive to convert some people away from paper statements and branch banking. The savings in your monthly energy bills can offset the higher monthly mortgage payments and save you money in the long run.50% rate reduction for a regular home equity loan is . or water heaters. offer green lending and raise money for local environment initiatives.

Green Bank is adopting an eco-friendly mission for the bank from top to bottom. The Green Bank website also includes educational resources and a carbon footprint calculator. This can be perfect form of motivation to encourage some people to bank online.available to customers who set up automatic payments from Wainwright Bank checking accounts. green mortgages. online Banking and eStatements. Instead of only offering a few green banking products. green checking and green money market accounts. Loans are fixed rate with terms of 5. The minimum opening deposit is $100 and a $100 balance must be maintained to avoid service fees. 10 or 15 years. Seven Green Bank branch offices exist in the Houston and Austin area. Each month only six pre-authorized. Saving with a Green Account: Bank of Utah The iSave Online Savings Account from Bank of Utah motivates you to help the environment by charging fees for any employee-assisted transaction. . Striving to be a Totally Green Bank: Green Bank This Texas-based bank has made a promise to act in environmentally and socially-responsible ways to support and strengthen the communities where they operate. The account requires a Bank of Utah personal checking account. Energy efficient home improvement projects can also have some federal tax benefits. pay bills online. and set up automatic payments. Green$ense Rewards: Citizens Bank The Citizens Bank Green$ense checking account will pay you ten cents every time you make a paperless transaction in your checking account. telebank or e-transfer debits are allowed. This can be a significant amount of paper saved for active bank customers who use a debit card. You can earn up to $120 a year in rewards from Citizens Bank and guess what? The debit card that they send for your account is made out of recycled plastic. automatic. Products include green loans.

and debit card transactions. The Green Saver CDs from Community Bank help promote the environment by utilizing online banking services.33% APY on balances of $0 to $25. Nebraska. and . The Community Bank green program is a simple way to benefit the environment through your normal banking activity. Online banking = additional conservation of energy and natural resources Paying bills online. A small quarterly transfer deposit is required and additional deposits are allowed before the maturity date of a CD. online banking.51% APY for any balance over the $25. The Green Account: Freestar Bank The Green Account from Freestar Bank rewards customers who adopt green banking services like direct deposit. online bill payment. Go Online It really is quite simple. Branch offices are located in Illinois.000. By rewarding customers who use their green services.000 and 0. Freestar Bank is helping the environment by reducing paperwork and carbon emissions. and online statements are just a few of the ways that online banking can create savings from less paper.Green Rewards Checking Accounts: Coulee Bank The Free Rewards Checking account from Coulee Bank will pay a 3.000 if the monthly online banking qualifications are met. Customer¶s part in green banking 1. In addition.00% APY on balances up to $25. and South Dakota can open a 12 Month Green Saver CD or a 24 Month Green Saver CD at Community Bank. remote deposit. online fund transfers. Green Certificates of Deposit: Community Bank Environmentally conscious residents of Iowa. customers can receive up to $20 in ATM fee refunds every month. Reward checking account offers like this deal from Coulee Bank help promote green checking by offering strong incentives to rate-sensitive bank customers to convert and use online banking services. less energy. Customers who meet the monthly account requirements can earn a 4.

Use Green Checking Accounts Using a green checking account helps the environment by utilizing more online banking servicesincluding online bill payment. Visit the Green Bank Report Checking Page for a list of the some of the latest green checking account deals. Use Green Credit Cards The benefit of using a green credit card is that some card issuers will donate funds to an environment-friendly non-profit organization. 4. debit cards. They can profit customers as well because many reward checking accounts will pay ahigh interest rate to bank customers who meet certain monthly requirements. If the customer still visit bank branches in his/her area. it helps their profits and not for purely altruistic reasons. find a green bank with an online banking platform and make the move today. the top tier rate only applies on balances up to a preset balance amount like $25. Political Considerations . study if the project can be done in an eco-friendly manner and if the customer might qualify for a green loan from a bank.less expenditure of natural resources from banking activities. Does Your Bank Really Want to Be Green? Most green banks will state in the information section of their website any commitment to the environment. or the local community that the bank has made. sustainable policies. Use Green Loans for Home Improvements Before a customer undertake a major home improvement project. Consumers should be aware that banks offer green checking account because. Green loans are perfect for energy-saving projects around the house.000 or $50.000. Find a better loan rate and save energy costs all at the same time. Does the bank branch look like every other bank branch in the city or is the bank taking part in environment-saving policies around the office? 6. 3. and online statements. it is very easy to gauge the commitment made to the environment by the bank. Customers who do meet all the monthly online checking requirements earn some of the highest rates available on FDIC-insured deposits. 2. Customers can also save money by avoiding many of those late payment fees or overdraft fees that can sneak up if the customers use bank-by-mail or branch bankingservices. 5. If the customers not yet signed up for online banking. Typically. Imagine kicking back a percentage of every dollar to spend on the customer¶s credit card to a worthwhile cause. Research the latest green credit card deals to find a card that will give back to the organization. ultimately.

Anyone interested in the political stance of their bank can research the topic at open document sites like opensecrets. the industries and firms are vulnerable to stringent public policies. Green Banking if implemented sincerely will act as an effective ex ante deterrent for the polluting industries that give a pass by to the other institutional regulatory mechanisms. Conclusion In a rapidly changing market economy where globalization of markets has intensified the 7. As Green Bank has rapidly expanded its operations. In the same vein. Through strategic partnerships Green Bank seeks out advice and insight from outside experts to gain fresh ideas on new product development. use of appropriate technologies and management systems. and deals by visiting rates. . marketing and business solutions to overcome the inevitable problems of rapid growth and to reach deeper into its customer base in an increasingly competitive market. Stay informed on all the green banking news. a few token contributions to Democratic candidates does not anoint a bank as ³green´.Politics is part of the equation when evaluating who the best green banks are in the US. Banks support candidates who support the issues that they care about. severe law suits or consumer boycotts. the challenge for its leadership has been on managing this growth successfully and prudently. just because the bank made a contribution to a Republican candidate is no reason to assume the bank is antienvironment. may not be the best green bank tomorrow. The banks should play a pro-active role to take environmental and ecological aspects as part of their lending principle which would force industries to go for mandated investment for environmental management. Stay Informed The best green bank in the local area today. However. .

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