Banks’ green, sustainable financing schemes widened  
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Sunday
January 29, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
SUNDAY, JANUARY 29, 2023
Banks’ green, sustainable financing schemes widened  

Banking

12 January, 2021, 10:15 pm
Last modified: 12 January, 2021, 10:56 pm

Related News

  • Aman Feed's profit plunge due to high prices of raw materials
  • Locating opportunities amidst challenges
  • TBS roundtable: Prominent businessmen want long-term crisis management framework for energy security
  • How MFS is turbocharging national economy
  • Twin shocks call for stronger domestic policy response

Banks’ green, sustainable financing schemes widened  

The central bank's Sustainable Finance Department issued a circular in this regard Tuesday.

12 January, 2021, 10:15 pm
Last modified: 12 January, 2021, 10:56 pm
TBS Illustration.
TBS Illustration.

On top of the current targets for green banking, the Bangladesh Bank has set new plans for bank loan disbursements in financing green and sustainable projects.

The central bank's Sustainable Finance Department (FSD) issued a circular for banks in this regard Tuesday.

According to the circular, at least 2% of the previous year's net outstanding loans and advances, excluding bank employee credits and defaulted loans, will have to be set for environment-friendly projects for the new year. 

This rate will be 15% for sustainable financing. Banks have been asked to notify the central bank FSD about the targets within the last working day of January each year.

The current financing targets for environmentally-friendly projects and sustainable schemes based on term loans will also continue.

The circular says the rate of green financing of banks and financial institutions will have to be at least 5% of the total term loans disbursed, excluding the employee loans. On the other hand, the target of sustainable financing should be at least 20%.

In order to expedite environment-friendly financing and sustainable financing, banks and financial institutions will set up "Dedicated Sustainable Finance Help Desk" in their potential branches and conduct "Help Desk" activities synchronising with their Sustainable Finance Unit at the head offices.

According to the Sustainable Finance Policy published by the Central Bank last December, green finance should promote greener technology in other sectors through its lending products. It refers to banks and non-bank financial institutions (NBFIs) lending to projects which reduces negative externality or promotes positive externality within the scope of the environment, thus endorsing or supporting green initiatives through financial instruments of banks and NBFIs.

Meantime, sustainable finance generally refers to the process of taking due account of environmental, social, and governance considerations when making investment decisions in the financial sector.

More specifically, environmental considerations may refer to climate change mitigation and adaptation and the environment more broadly, such as the preservation of biodiversity, pollution prevention, and circular economy.

In another circular Tuesday, the central bank said it had issued a licence to the payment system operator (PSO) John Portonics Limited to provide payment gateways and merchant aggregator services within the country.

Economy / Top News

Banking / Economy

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Getting gas to India will be even more costly than laying this pipe to China.Photographer: Andrey Rudakov/Bloomberg
    Russia can't replace the energy market Putin broke
  • Ex-MD Mehmood Hossain rejoining National Bank
    Ex-MD Mehmood Hossain rejoining National Bank
  • Photo: UNB
    AL won't run away, rather will continue developing Bangladesh: PM in Rajshahi

MOST VIEWED

  • Ex-MD Mehmood Hossain rejoining National Bank
    Ex-MD Mehmood Hossain rejoining National Bank
  • Sonali Bank going to open exchange house in Maldives
    Sonali Bank going to open exchange house in Maldives
  • Infograph: TBS
    State banks spend 80% of their forex for govt imports in H1
  • Cry for dollar for Ramadan imports
    Cry for dollar for Ramadan imports
  • Call money rate hits 7% for first time in over 6 years
    Call money rate hits 7% for first time in over 6 years
  • Bankers' assocs warn banks against buying remittances at higher rates
    Bankers' assocs warn banks against buying remittances at higher rates

Related News

  • Aman Feed's profit plunge due to high prices of raw materials
  • Locating opportunities amidst challenges
  • TBS roundtable: Prominent businessmen want long-term crisis management framework for energy security
  • How MFS is turbocharging national economy
  • Twin shocks call for stronger domestic policy response

Features

Nandita Sharmin's journey to give organic skincare a new identity

Nandita Sharmin's journey to give organic skincare a new identity

6h | Mode
Illustration: TBS

'The silver lining is that the worst is sort of behind us': Hamid Rashid, UN economist

10h | Panorama
Photo: Bloomberg

BuzzFeed and AI are a match made in fad city

9h | Panorama
Snipe in flight. Photo: Enam Ul Haque

Baikka Beel: 'A world where snipe work late'

1d | Panorama

More Videos from TBS

Sarika Sabrin is waiting for a good film

Sarika Sabrin is waiting for a good film

24m | TBS Entertainment
Take your football game to the next level at Next Level academy

Take your football game to the next level at Next Level academy

1h | TBS SPORTS
“Investments risky without consistent policy, reliable data”- SK Bashir Uddin

“Investments risky without consistent policy, reliable data”- SK Bashir Uddin

3h | TBS Round Table
What does Shahrukh has in his 770 million dollar property?

What does Shahrukh has in his 770 million dollar property?

23h | TBS Entertainment

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

3
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

4
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

5
Bapex calls candidates for job test 9 years after advert!
Bangladesh

Bapex calls candidates for job test 9 years after advert!

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]