Skilled leadership needed to boost green financing: study
Banks will have to ensure corporate governance and skilled leadership to give a boost to their efforts towards sustainable and green financing, according to a research.
All stakeholders, including the central bank, commercial banks and clients, also will have to give integrated efforts to protect the environment from pollution.
The Bangladesh Institute of Bank Management (BIBM) yesterday unveiled the research titled “Sustainable banking activities of Bangladesh” at its office in the capital.
Prof Shah Md Ahsan Habib, a director of the BIBM, presented the research paper at a review workshop.
According to the study, an integrated approach of the policymaker and industry was key to promoting sustainable and green financing.
Banks should focus on addressing the qualities of profitability in economic, social and environmental fronts through ensuring sustainable and green banking.
Waste management, biodiversity, warehousing and green transportation should get due emphasis to obtain required benefits in the near future where sustainable banking would play a crucial role.
The central bank mainly gives importance on three broad areas under sustainable banking – green banking, corporate social responsibility (CSR) and financial inclusion, said SM Moniruzzaman, deputy governor of the central bank.
The green banking initiatives conducted by the BB has improved awareness and knowledge among bankers and customers as well.
The research has noticed that the majority of financing in green activities has been carried out by private banks.
In the field of CSR, both the banks and non-bank financial institutions continued to maintain major shares in humanitarian efforts and disaster relief and education, which is good for the economy, the study found.
Output from the study along with opinions and observations will help the BB take future actions, said Md Nazimuddin, an executive director of the central bank and also the director general of the BIBM.
Barkat-e-Khuda, the BIBM’s Dr Muzaffer Ahmed Chair Professor; Helal Ahmed Chowdhury, supernumerary professor, and Yasin Ali, a former supernumerary professor, spoke among others at the event.
