Green Banking Policy of Bangladesh Bank
The world temperature is rising day by day and global warming is being burning issue of time. There is no debate among the scientist community that global warming is affecting our ecosystem and human activities are the primary causes. Now this is the demand of time to do something for saving our planet from global warming in individual, national and international level. Since the Industrial revolution Bank plays a vital role in finance sector. This sector has been feeling that they can take a key responsibility to accelerate the initiative of climate Change issues. Green Banking is a Banking initiative for protecting our environment. ...view middle of the document...
2. Rational of the study
Bangladesh is a low carbon emitting country even among the developing countries likely to be one of the worst sufferers of Global Warming. It is experienced that climate change has already enhanced the frequency and intensity of floods, droughts and cyclones in Bangladesh and would have negative impact on water resources, land, crop agriculture and food security, fisheries and livestock, forestry and bio-diversity and human health as well. Banks hold a unique position in an economic system that can affect production, services, business and other activities through their financing activities and thus may contribute to remove polluted environment. The banks should go green and play a pro-active role to take environmental and ecological aspects as part of their lending and investment principle which would direct industries to go for mandated investment for environmental management by using appropriate technologies and management systems. As a central bank, Bangladesh Bank plays a vital role upon all of major commercial banks of Bangladesh. Bangladesh Bank can implement the policy and framework of green banking properly by using their control upon all commercial banks and spreading the effects and awareness of Green banking all over the country. From my point of view to create the awareness against the affects of global warming, Green banking policy of Bangladesh Bank can take an important step.
3. Research Questions
My research will be addressed the following question:
What are the major factors behind implementing the green banking policy of Bangladesh Bank?
My research hypothesizes are as follows:
H1: Green banking will fulfill the social responsibilities of banking organizations.
H2: Green banking will increase the fund for environmental activities.
H3: Green banking will implement the technology based banking system.
H4: Green banking will raise the brand image of the organizations.
The objectives of the research are as follows:
1. To analyze the green banking policy of Bangladesh Bank.
2. To find out the reasons for implementing green banking in Bangladesh Bank.
3. To find out the positive impacts of green banking in Bangladesh.
6. Literature Review
Thombre (2011) disputed that environmental effect of bank’s external specific act is enormous though hard to estimate. Therefore, providing support of environmentally responsible careful lending and investments should be one of the accountability of the banking sector. (Sahoo and Nayak 2008). The bank should move green and play a pro-active function to take ecological and environmental direction as part of their lending principle, which would compel industries to go for issue a commend investment for environmental supervising, use of management systems and suitable technologies (Hayder 2012). Verma (2012) settled that Indian banking is progressively coming to understand that there is require from a shift from the ‘profit, profit and...