International and national organization

Federal deposit insurance corporation (FDIC)

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United
States government that protects the funds depositors place in banks and savings associations.
FDIC insurance is backed by the full faith and credit of the United States government. Since the
FDIC was established in 1933, no depositor has lost a penny of FDIC-insured funds.
FDIC insurance covers all deposit accounts, including:

Checking accounts
Savings accounts
Money market deposit accounts
Certificates of deposit

FDIC insurance does not cover other financial products and services that banks may offer, such
as stocks, bonds, mutual funds, life insurance policies, annuities or securities. The standard
insurance amount is $250,000 per depositor, per insured bank, for each account ownership
category.

The National Credit Union Administration (NCUA)

The National Credit Union Administration (NCUA) is an independent federal agency in the
United States responsible for supervising mortgages, loans and savings accounts.
FDIC insurance covers all deposit accounts, including:

Checking accounts
Savings accounts
Money market deposit accounts
Certificates of deposit

The NCUA is a U.S. government agency founded in 1970. It’s responsible for almost 6,000 credit
unions in the U.S. with almost 105 million account holders, more than $1.3 trillion in assets and
more than $847 billion in net loans - to ensure they are functioning properly and
following federal regulations.
Canadian Deposit Insurance Corporation (CDIC)

Canadian Deposit Insurance Corporation (CDIC) is a Canadian federal crown corporation owned
by the Canadian government. The CDIC insures Canadians’ bank deposits up to $100,000 per
insured category held in member Canadian banks to protect against losses in the event that the
financial institution fails.  Eligible deposits include:

Saving account
Checking account
Long term account
Certificates of deposit

Mudaraba Term Deposit Account (MTDA)

Mudaraba Term Deposit (MTD) is a mode of deposit under Mudaraba principles of Islamic
Shariah. It is a profit / loss bearing product. These deposits are repayable subject to a period of
notice and hence known as time deposits or time liabilities meaning thereby that these are
withdraw able subject to a period of notice and not on demand.

Deposits under MTD are accepted for different tenures as decided by the Bank and are entitled
to receive profit on their deposit on the basis of weightage as decided by the management. A
receipt is issued against each deposit under MTD. The bank’s decision in this respect is final &
binding on the Mudaraba Term Depositors.

Indicators

Rural Development:

 Green Saving accounts plays a crucial role in sustaining and developing our small and
cottage industries. Because most of our small and cottage industries are being closed due
to lack of enough capital.
 Green saving accounts provide our unemployed youths with training and loan to start a
business or to invest in a farm. Such training and income generation projects can make our
youths self- reliant.
 Green saving accounts provide the rural small businessmen with loans from deposit money
for rural development.

Environment

 From recycling programs to energy conservation in offices and branches, green saving
accounts are working to reduce their operation footprints on the environment.
 Green saving accounts take environmental protection into account when making lending
decisions. In commercial and wholesale banking this means incorporation environmental
due diligence into the lending process, which may include site visits, assessments of a
client’s environmental record.
 Green saving accounts are developing sustainable environmental new products and
services that to consumer demand for sustainable choices, from paperless statements to
co-brand credit cards.

Education

 Green saving accounts encompasses interventions in early childhood care and

development, primary education, and literacy and non-formal education.
 Providing teacher training and continued professional development and support
programs.
 Implementing appropriate teaching and learning methodologies, including the use of
information and communications technology.
 Strengthening of national education systems management.

Poverty Alleviation

 Green saving accounts create employment opportunities through income generating

activities for rural men and women that helps to reduce poverty alleviation.
 Green saving accounts empower the rural women to establish their own rights by
alleviating poverty.
 Green saving accounts improve the living standard of the rural people and alleviate
poverty of the poor people.
 Indicators Types of initiative
Waste management Methane recovery from municipal waste and to produce
power.

Manufacturing of recycling Waste paper recycling plant for production of recycled

and recyclable product paper.

Green (Environment-friendly) Green industry constructed or under construction accredited

Establishment by USGBC-LEED, BREEAM, CASBEE, EDGE, GRIHA or any
green building rating system developed by SREDA,
Bangladesh.
Education Ensuring quality and professional teaching.

Rural development Ensuring safety and work environment.

Table: Green saving accounts indicators.

Sustainability

Therefore, green saving accounts can play an intermediary role between economic
development and environmental protection, for promoting environmentally sustainable and
socially responsible investment.

Environmental Sustainability

Environmental factors with an aim to protect the environment and conserve natural resources.
Green saving accounts covering environmental expenses incurred by polluting activities, for example,
relating to damages and losses caused to third parties, body and material damages, cleaning and even
legal costs, which would therefore play a compensatory role in the event of an environmental accident.
Green saving accounts help the overall reduction of external carbon emission and internal
carbon footprint. It is basically the paperless banking which doesn't harm the environment at
all. It is also the finance of the banking project, service or trade in a firm or individual which
doesn't pollute the environment in any way or causes any harmful elements or waste to the
atmosphere.
Socio-Economical Sustainability

Green saving accounts seeking sustainable use of natural resources with efficient production and cost
reduction. Banking has a high consumption of paper such as statements, credit card bills, investment
balance sheets and promotional material complete forms, print reports and other activities that can
increase expense by making native deforestation. Green saving accounts maintain increasing the use of
recycled paper reduces solid waste and, consequently, reduces pollution. Higher paper consumption
leads to higher ink consumption. Green banking does priority to reduce cost for this reason by avoiding
high expensive ink consuming. The energy-saving measures undertaken by green banking is also an
important aspect of sustainability for the social-economic factor.

Management activities

 Policy initiatives
 Environmental Risk Management (ERM).
 Climate risk fund and green marketing.
 Online banking and energy efficiency.
 BB’s in house environmental environment.

Recommendations:

The following points are recommended through the study:

 Bangladesh Bank should take additional steps to make the banks and the general people of
the country more aware about its activities.
 Bangladesh Bank should punish those banks which are not maintaining the policy
guidelines given by them.
 Bangladesh bank should give a minimum set of requirements for disclosure about Green
Banking and green saving accounts.
 Green Banking should report their green banking performances on quarterly basis.
 Green banking should report in standard format with external verification.
 Green banking must maintain a proper policy formulation and governance.
Conclusion

Green saving refers to the initiatives taken by banks to encourage environment-friendly

investment. Green banking and green saving as a concept is a proactive and smart way of
thinking towards future sustainability. It is very important for the banks to be pro-active and
accelerate the rate of the growth of the economy. As there is a continuous change in the
environmental factors leading the banks face intense competition in the global market. Banks
needs to apply morality of sustainability and responsibility to their business model, strategy and
formulation for products and services, operations and financing activities and become stronger.

References