1.1.

Introduction
T h e G r e e n B a n k i n g i s n o w p o p u l a r w o r l d w i d e
n o w - a - d a y s . I t i s f o r s t o p p i n g t h e environmentaldegradationandmakingthisplanethabitable.TheconceptofGreen
Bankingwasdevelopedinthewesterncountries.Greenbankingisageneralterm,whichcancovermultitudeofareasfroma
bank being environmentally friendly to how and also where their money is
invested. Defining green banking is relatively easy. It means promoting environmental-
friendly practices andr e d u c i n g c a r b o n f o o t p r i n t f r o m b a n k i n g a c t i v i t i e s . g
reen bank is a bank that promotesenvironmental and social responsibilit
y b u t o p e r a t e s a s a t r a d i t i o n a l c o m m u n i t y b a n k a n d provides e!cellent services
to investors and clients. Its progressive approach to the communitya n d t h e e a r t h
makes it different from the crowd. green bank is
a l s o c a l l e d e t h i c a l bank, environmentally responsible bank, socially
responsible bank, or a sustainable bank, and ise!pected to consider all the social and environmental
factors. Green banking involves pursuing of financialandbusinesspoliciesthatarenot
ha"ardoustoenvironmentratherhelpconserveenvironment.The broad ob#ective of green banking is to use
resources with responsibility and giving priorityto environment and society. It is more
about focusing on $mother planet and its sustainability$, shifting from a traditional
approach on $profit$ or even $people$. Green banking is not #ust
another corporatesocialresponsibility%&'()activity*itisallaboutgoingbeyondtokeepthisworldlivablewithoutm u c h d a m a g e .
Green banking, which considers all the social and environ
mental factors,is also called+ ethical banking$. thical b
a n k s s t a r t e d w i t h t h e a i m o f p r o t e c t i n g t h e environment. These
banks are like normal banks that aim to protect the environment and are controlled
by the same authorities. Green banking, compared to normal banking, attaches
morei m p o r t a n c e t o e n v i r o n m e n t a l f a c t o r s . I t s a i m i s t o p r o v i d e g o o d e n v
i r o n m e n t a l a n d s o c i a l business practices. It checks all the factors before considering a l
oan whether the pro#ect isenvironment-friendlyandhasanyimplicationonthefutureofpeopleandplanet. nwouldbeawardedaloanonlywhenall
environmentalsafetystandardsarefollowed.Basically,greenbankingavoidsasmuchas paper work as possible - from go-green
credit cards and go-green mortgages to all
transactionsd o n e o n l i n e . I t c r e a t e s a w a r e n e s s a r o u n d b u s i n e s s p e o p l e a b o u
t e n v i r o n m e n t a l a n d s o c i a l responsibility, enabling them to adopt environment
friendly business practices, and followse n v i r o n m e n t a l s t a n d a r d s f o r
lending.
hen a person is awarded a loan, the interest is lessthan normal
banks because ethical banks give more importance to
e n v i r o n m e n t - f r i e n d l y factors - they do not operate with high interest rates
only. The world has seen much focus on
2

economic progress and mankind has made giant steps in its #ourney through
time. The side-
effects of the development process have, however, also been e/u
a l l y e n o r m o u s 0 l o s s o f biodiversity, climatic change, environmental damage, etc.
nvironmental issue such as,r e s t o r a t i o n o f n a t u r e + s f a c e o f b e a u t y h a v e
a l s o b e c o m e m o r e i m p o r t a n t a s t h e w o r l d h a s progressed economically. Banglad
esh is, a low carbon emitting country even among thedeveloping countries, likely to be one of
the worst sufferers of Global arming. It is e!periencedthat climate change has already
enhanced the fre/uency and intensity of floods, droughts
andc yc l o n e s i n B a n g l a d e s h , a n d w o u l d h a v e n e g a t i v e i m p a c t o n w a t e r r e
s o u r c e s , l a n d , c r o p agriculture and food security, fisheries and livestock,
forestry and bio-diversity, and humanhealth as well. Banks hold a uni/ue posi tion
in an economic system that can affect production, services, business and other
activities through their financing activities and thus may contributeto removing polluted
environment. The banks should go green and play a pro-active role to takeenvironmental
and ecological aspects as part of their lending and investment principle,
whichwould direct industries to go for mandated investment for environmental
management, use
of a p p r o p r i a t e t e c h n o l o g i e s a n d m a n a g e m e n t s ys t e m s . G r e e n B a n k i n g m
eans eco-friendly or environment-
friendly banking to stop environmental degradation to make this planet
m o r e habitable. This comes in many forms. 1roviding innovative green products2 using
online
bankingi n s t e a d o f b r a n c h b a n k i n g , p a yi n g b i l l s o n l i n e i n s t e a d o f m a i l i n g
t h e m , p u r c h a s i n g g r e e n mortgage, opening up of &Ds, green credit cards and
money market accounts at online banksi n s t e a d o f l a r g e m u l t i - b r a n c h b a n k s
o r f i n d i n g t h e l o c a l b a n k i n yo u r a r e a t h a t i s t a k i n g
t h e biggest steps to support local green initiatives. Green Banking is also a multi-
stakeholders$endeavor where banks have to work closely with government, 3G s,
International
4inancialInstitutes, International Government rgani"ations, &entral Bank, cons
umers and businesscommunities to reach the goal. Green Banking is
an ethical banking5 social banking %6bankswith a conscience7-Benefiter, 89::) as
there is a strong building block which is corporate socialresponsibility %&'() within the
agenda of green banking. &'( bind banks in a relation withsociety5people
showing the caring face of it in different situation, especially, in crisis
period.4urthermore, Green Banking is regarded as sustainable banking, which
has a role to safeguardthe planet from environmental degradation, with the aim of
ensuring economic growth which issustainable. To implement 6Green Banking7, Bangladesh
bank has developed the regulations of Green banking in the year 89::. Bangladesh Bank is the
orld+s first central bank, which has in
1.1. Introduction
The Green Banking is now popular worldwide now-a-days. It is for stopping
theenvironmental degradation and making this planet habitable. The concept of Green
Banking was developed inthe western countries. Green banking is a general term, which can
cover multitude of areas from a
bank being environmentally friendly to how and also where their money is
invested. Defining green banking is relatively easy. It means promoting environmental-
friendly practices andreducing carbon footprint from banking activities. green bank is a ba
nk that promotesenvironmental and social responsibility but operates as a traditional commun
ity bank and provides e!cellent services to investors and clients. Its progressive approach to
the communityand the earth makes it different from the crowd. green bank is also called
ethical bank, environmentally responsible bank, socially responsible bank, or a sustainable
bank, and ise!pected to consider all the social and environmental factors. Green banking
involves pursuing of financial and business policies that are not
ha"ardous to environment rather help conserve environment.The broad ob#ective of green
banking is to use resources with responsibility and giving priorityto environment and society.
It is more about focusing on $mother planet and its sustainability$,shifting from a traditional
approach on $profit$ or even $people$. Green banking is not #ust
another corporate social responsibility %&'() activity* it is all about going beyond to keep
this world livable withoutmuch damage.
Green banking, which considers all the social and environmental factors,is also called+ ethica
l banking$. thical banks started with the aim of protecting theenvironment. These banks
are like normal banks that aim to protect the environment and arecontrolled by the same
authorities. Green banking, compared to normal banking, attaches
moreimportance to environmental factors. Its aim is to provide good environmental and socia
l business practices. It checks all the factors before considering a loan whether the pro#ect ise
nvironment-friendly and has any implication on the future of people and planet. n would
be awarded aloan only when all environmental safety standards are followed. Basically, green
banking avoids as muchas paper work as possible - from go-green credit cards and go-green
mortgages to all
transactionsdone online. It creates awareness around business people about environmental an
d socialresponsibility, enabling them to adopt environment friendly business
practices, and followsenvironmental standards for lending.
hen a person is awarded a loan, the interest is lessthan normal banks because ethical banks
give more importance to environment-friendlyfactors -
they do not operate with high interest rates only. The world has seen much focus on
2

economic progress and mankind has made giant steps in its #ourney through time. The side-
effects of the development process have, however, also been e/ually enormous0loss of biodiv
ersity, climatic change, environmental damage, etc.
nvironmental issue such as,restoration of nature+s face of beauty have
also become more important as the world has progressed economically. Bangladesh is, a low
carbon emitting country even among thedeveloping countries, likely to be one of the worst
sufferers of Global arming. It is e!periencedthat climate change has already enhanced the
fre/uency and intensity of floods, droughts
andcyclones in Bangladesh, and would have negative impact on water resources, land, cropag
riculture and food security, fisheries and livestock, forestry and bio-diversity, and
humanhealth as well. Banks hold a uni/ue position in an economic system that can affect
production,services, business and other activities through their financing activities and thus
may contributeto removing polluted environment. The banks should go green and play a pro-
active role to takeenvironmental and ecological aspects as part of their lending and
investment principle, whichwould direct industries to go for mandated investment for
environmental management, use
of appropriate technologies and management systems. Green Banking means eco-
friendly or environment-
friendly banking to stop environmental degradation to make this planet morehabitable. This
comes in many forms. 1roviding innovative green products2 using online
bankinginstead of branch banking, paying bills online instead of mailing them, purchasing gr
eenmortgage, opening up of &Ds, green credit cards and money market accounts at online
banksinstead of large multi-branch banks or finding the local bank in your area that is taking
the biggest steps to support local green initiatives. Green Banking is also a multi-
stakeholders$endeavor where banks have to work closely with government, 3G s,
International 4inancialInstitutes, International Government
rgani"ations, &entral Bank, consumers and businesscommunities to reach the goal. Green
Banking is an ethical banking5 social banking %6bankswith a conscience7-Benefiter, 89::) as
there is a strong building block which is corporate socialresponsibility %&'() within the
agenda of green banking. &'( bind banks in a relation withsociety5people showing the caring
face of it in different situation, especially, in crisis period.4urthermore, Green Banking is
regarded as sustainable banking, which has a role to safeguardthe planet from environmental
degradation, with the aim of ensuring economic growth which issustainable. To implement
6Green Banking7, Bangladesh bank has developed the regulations of Green banking in the
year 89::. Bangladesh Bank is the orld+s first central bank, which has in
3