Introduction to Green Banking

Green Banking is not a separate bank. The term Green Banking is popular world-wide now-a-
days. It is for refraining the environmental deterioration and making this planet habitable. Global
warming and climate change are now having direct impact on biodiversity, agriculture, forestry,
dry land, water resources and human health.
Bangladesh is one of the most vulnerable countries facing the impacts of climate change and
therefore, has the concern in the environmental degradation. Bangladesh is a country suffering
from immense social, political, economic and environmental issues and these issues need to be
addressed for overall development of this country.
The concept of Green Banking developed in the western countries has been replicated by many
developing countries. It means the eco-friendly or environment-friendly banking and it also
refers to ethical banking or sustainable banking. Banking industry is generally not considered as
polluting industry. But it impacts the environment in terms of increasing energy consumption
(lighting, air conditioning), paper consumption. Banks and financial institutions can play a major
role in global efforts to mitigate environmental risk and make this planet a better place to live.
Environmental impact of banks is not physically related to their banking activities but with the
customer’s activities. Green banking is an umbrella term which refers to those practices and
guidelines that make banks environmentally, economically and socially responsible.
Therefore, the banking sector can play an intermediary role between economic development and
environmental protection, for promoting environmentally sustainable and socially responsible
investment.

Green Banking Products:

Green Banking product and service review is divided into the following banking sectors:
 Retail Banking

 Corporate & Investment Banking

 Asset Management

 Insurance

Retail Banking:
a) Green Mortgage
b) Green home equity loans
c) Green commercial Building loans
d) Green car loans
e) Green cards
Corporate & Investment Banking:
a) Green products finance
b) Green securitization
c) Green venture capital and private equity
d) Green Indices
e) Carbon commodities
Asset Management:
a) Green fiscal funds
b) Green Investment funds
c) Carbon funds
Insurance:
a) Green Insurance
b) Carbon Insurance