Brief Articles, Notes and Comments Green Banking in Bangladesh

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Ullah: Green Banking in Bangladesh: Progress, Problems and Prospects ..... online banking, only 41.05 per cent bank branches of all categories are providing.
Prajnan, Vol. XLIII, No. 1, 2014-15

© 2014-15, NIBM, Pune

Brief Articles, Notes and Comments

Green Banking in Bangladesh: Progress, Problems and Prospects Md Shahid Ullah Received: 03-10-2013 Accepted: 17-01-2014

Environmental concern is at the centre of Green Banking (GB) policies and strategies. Considering the importance of green banking, Bangladesh Bank (BB), the central bank of the country, has undertaken a number of initiatives. The broad objective of the paper is to assess the achievements of Bangladesh in eco-friendly banking. The specific objectives of the paper is to review the relevance of GB, the policy, regulatory and business environment of GB; to assess the achievements and prospects of GB and to identify impediments on the way to reaching a green economy in Bangladesh. The study finds that the policy initiatives for GB are numerous; however, one-size fits all policy, weak enforcement of environmental laws, unpreparedness of the banks, market imperfection and ignorant customer group are the major hinderances in doing GB. The coordinated efforts of Bangladesh Bank, banks, government, consumers and pressure groups are essential to attain the vision of a green economy in Bangladesh. Keywords: Green Banking, Banks, Bangladesh JEL Classification: E58, G21, Q56

Section I Introduction Environmental concern is at the core of Green Banking (GB) policies and strategies. The public concern of the state of environment has been growing rapidly in the last few years, mostly due to unusual weather patterns, rising greenhouse gases, declining air quality, etc. (Zeitlberger, 2007). Pressures from a number of internal and external forces to minimize the environmental impact led banks and financial institutions at home and abroad to operate in a socially and environmentally Shri Md. Shahid Ullah ([email protected]) is Assistant Professor, Bangladesh Institute of Bank Management (BIBM), Bangladesh.

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responsible manner. Doing so will not only mitigate pressure, but also help them to improve their own standards by conserving environment. Moreover, banks that mainly do businesses with the depositors' money cannot avoid responsibility to the society. It is well known that governments in different countries intervened to save banks using taxpayers' money in response to 2008-09 bank failure during financial crisis. As the common people have to take care of banks in their bad days, banks must be ready to take care of the society as well (Habib, 2010). Banks hold a unique position in an economic system. They play a crucial role affecting production, business, economic and developmental activities through their financing; exercising considerable influence over investment and management decisions of businesses that could have positive effects on the environment. Today, an increasing number of banks are going green by providing innovative products to support the activities that are not hazardous to environment and help conserve environment. Such activities are known as 'Green Banking', 'Environmental Banking' or 'Sustainable Banking' and the banks doing these activities are popularly called 'Environmental Bank', 'Green Bank', 'Sustainable Bank' or 'Ethical Bank'. Banks interact with the environment in a number of ways: as lenders – financing sustainable developmental activities; as innovators – devising environment friendly energy saving financial products; as valuers – pricing risks and estimating returns; as shareholders; as polluters – consuming considerable chunk of resources; and as victims of climate change (EC, 1997). In response to the legislative and regulatory bindings and incentives to promote GB, a good number of banks in developed countries have been demonstrating their commitment to the earth through incorporating environmental risk in financing; using recycling programmes; focusing on energy efficiency, purchasing carbon offsets; and sponsoring environmental events. In contrast, the status of environmental management has not been satisfactory in many developing countries, largely due to poor enforcement of existing laws and policies, lack of incentives and inadequate pressure from civil society and interest groups (Habib, 2010). However, Bangladesh Bank (BB) has been supporting the government in achieving environmental objectives through banks and financial institutions and from time to time it has been undertaking many initiatives including environmental regulations, refinancing facilities, etc. The recent circular on 'Policy Guidelines for Green Banking' is a noteworthy step on the way to promoting green banking in Bangladesh. 1. Objectives of the Study On the above backdrop, the paper aims, broadly, at evaluating the achievements of Bangladesh in green banking. The specific objectives of the paper are: firstly, to review the relevance of GB; secondly, to identify and analyze the policy, regulatory and business environment of GB; thirdly, to assess the achievements and prospects of GB in Bangladesh; and finally, to identify problems on the way to reaching a green economy in Bangladesh.

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2. Methodology of the Study The study is based on both primary and secondary information. Secondary and published literature and sustainability reports of different banks, financial institutions, and environmental organizations have been reviewed to understand conceptual aspects and importance of green banking. Primary data have been collected through face-to-face and telephonic interviews from the officials of the relevant desks of twenty selected commercial banks. 1 Some primary data from the banks were also collected through email. In collecting primary data unstructured questionnaires have been used. To analyze and interpret data different descriptive statistical tools, charts, tables, etc. have been used.

Section II Literature Review Climate change is a rapidly growing topic of interest and concern in the banking community. For most cases, banks are to be affected by climate change to the extent that general economic activity is affected (Llewellyn, 2007). In connection with climate change related risks, the biggest threat to banks is credit risk (Yang, 2011). Overall non-performing loans may go up with the increasing physical damages due to extreme weather patterns and unanticipated mitigation costs due to regulatory changes (WWF, 2005). Besides, banks face operational and reputational risks. Oliver (2007) noted that the primary reason for adopting an environmental programme by banks is to mitigate reputational risk rather than credit and market risks. The more companies adopt environmentally and socially responsible policies, the more resilient they will be to attacks on their reputation (Hopkins, 2001). Banks are responding positively towards climate change by cutting energy consumption, substituting fossil fuels with renewable sources, and reducing business travel (CERES, 2008; Bank Track, 2007). Climate change also generates economic opportunities such as investments in renewable energy technologies/ projects, emissions trading (Bank Track, 2007). According to the World Energy Council (2007), the renewable energy market could be worth 1.4 trillion Euros by 2020. GB esteems society, nature and ethics which in turn can improve the competitive position of a company (Mittal, et al, 2008). GB practices by banks not only improve their own standards but also affect environmentally responsible behaviours of other businesses. Studies show that the benefits of engaging in environmental and social responsibility include: improved financial performance, trust, brand 1.

Sonali Bank Ltd., Agrani Bank Ltd., Rupali Bank Ltd, Bank Asia Ltd., Eastern Bank Ltd., Uttara Bank Ltd., United Commercial Bank Ltd., Mutual Trust Bank Ltd., Dutch-Bangla Bank Ltd., One Bank Ltd., IFIC Bank Ltd., Islami Bank Bangladesh Ltd, Exim Bank Ltd, Shahjalal Islami Bank Ltd., Social Islami Bank Ltd, Jamuna Bank Ltd. Standard Chartered Bank, HSBC, BKB and BASIC Bank Ltd.

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image, sales and customer loyalty, community development, government relations, reduced risk, regulatory intervention, costs, tax, etc. (Hoque, 2008; Rahman, 2011). GB helps us save our resources through effective in-house environment management, eco-friendly lending, conserving environment and focusing on three Ps – People, Planet, and Profit simultaneously.

Section III Initiatives of Other Economies for Promoting Green Banking Climate change is a rapidly growing issue of concern and interest for the banking community both in developed and developing countries. However, performances of banks in different regions vary, Bettina, et al. (2009), analyzed climate strategies for 114 major global banks using 2007 data focusing governance, business and operation and found that the banks of Australia, Europe and North America performed (scored 86, 78 and 67 respectively) better compared to that of Asia and South America (scored 51 and 52 respectively). US banks are the frontiers that drastically changed their policies after enforcement of the Comprehensive Environmental Responses, Compensation, and Liability Act (CERCLA) by the US Government in 1980 (Weber, et. al., 2008). The CERCLA caused huge loss to the banks as they were held directly responsible for the environmental pollution of their clients and had to pay the remedial cost. The UK government took many initiatives for promoting GB. In May 2012 the UK Government set up UK Green Investment Bank with £3.8 billion of funding to provide financing to green projects (UK GIB, undated). In some Asian countries both, the government and banks undertook several initiatives. The State Environmental Protection Agency, the People's Bank of China, and the China Banking Regulatory Commission jointly developed a Green Credit Policy in 2007 to refrain financing to highly polluting projects. The policy sends a strong message to banks concerning their environmental responsibilities (Business Issues Bulletin, 2009). The Kwangju Bank of South Korea, in support of local government, launched a 'carbon bank' plan, giving points for energy saving that can be used for daily consumption (Yang, 2011). Some Indonesian banks have been actively supporting environmental efficiency through farms, wastes and garbage management (WEF, 2009). The environmental regulations in India can be broadly classified into two broad categories, i.e. command and control regulations, and liability laws. The former designed to dissuade environmentally damaging projects and the later is ex-post in nature and are implemented by enforcing authorities through imposing fines, and closing down the defaulting industries. However, there is no law in India that can hold banks responsible for scrutinizing investment projects before financing and for the environmental damage created by its client (Sahoo and Nayak, 2008).

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Section IV Policy and Regulatory Initiatives for Promoting Green Banking in Bangladesh 1. Sustainable Initiatives by the Government The Government of Bangladesh is proactive and responsive about the environmental degradation. Though the implementation status of laws is not up to the mark, there are as many as 21 environmental legislations in Bangladesh (Appendix 1). Around 60 per cent people in Bangladesh are not getting electricity while around 90 per cent are out of the natural gas network. Renewable energy, especially solar energy and biogas can provide a sustainable and environment friendly solution. To facilitate them the government enacted the Renewable Energy Policy in 2008 and accordingly decided to produce 5 per cent of total power generation from renewable energy sources like solar energy, air and waste by 2015 and 10 per cent by 2020. Bangladesh Environmental Conservation Act (ECA), 1995 is the umbrella Act. ECA 1995 and ECR 1997 together provide the framework of environmental regulations relevant to industries of the country. It is to be noted that the clearance from the Department of Environment (DOF) is one of the requirements for obtaining finance from banks. ECR 1997 prescribes various performance standards that are both general and industry specific. To refine the industrial wastage, Effluent Treatment Plants (ETP) have been installed in 280 industries and zero per cent tariff facility has been proposed in FY 2012-13 budget instead of existing 1 per cent for imports of ETP. Though Bangladesh is not compelled to mitigate carbon emission, the government undertook a number of initiatives. Over the last three decades the government invested about USD10.0 billion to strengthen resilience capacity. Moreover, the government allocated BDT 21.0 billion during 2010-12 under Bangladesh Climate Change Trust Fund (BCCTF) for increasing resilience to climate change and proposed another BDT 4.0 billion for FY 2012-13. The government also established a fund named Bangladesh Climate Change Resilience Fund (BCCRF) with the financial help of the development partners including the United Kingdom, European Union, Denmark, Sweden and Australia who have already contributed around US $200 million to the Fund. World Bank is the trustee of the Fund (bccrf-bd.org). 2. Sustainable Initiatives by Bangladesh Bank In line with government legislations, Bangladesh Bank has undertaken certain praiseworthy green initiatives. In 1997, commercial banks of the country were asked2 to ensure measures controlling environmental pollution before financing 2.

BB BRPD Circular No. 12 dated August 10, 1997.

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a new project or providing working capital financing to the existing enterprises.3 According to the BB requirements, the industrial units that may harm environment to be established under bank credit would get permission for opening LC to import machineries only after ensuring that the list of machines include ETP.4 BB issued a comprehensive guideline on CSR asking banks to consider CSR at their highest corporate level.5 BB has also been taking initiatives for the rehabilitation of cyclone and other natural disaster affected people of the country and asked the commercial banks to be cautious about the adverse impact of natural calamities and encourage farmers to cultivate salinity-resistant crops in the salty areas, water-resistant crops in the water-logged and flood prone areas, drought-resistant crops in the drought prone areas. 6 BB acts as a pioneer in using renewable energy in the country. In 2010, BB set up an 8 kilowatt solar panel as a move towards encouraging sustainable energy in Bangladesh. BB introduced BDT 2.0 billion refinance line in FY 2010 against bank loans for investments in renewable energy like solar energy, bio-gas plant, ETP and modern brick making technology. 7 BB also distributed BDT 5.0 billion under another refinance facility through four SCBs in June 2010 with the guarantee of the Ministry of Finance for on-lending to facilitate jute sector, the golden fiber of Bangladesh. The recent circular on 'Policy Guidelines for Green Banking’ 8 is a remarkable step on the way to develop GB practices in Bangladesh. The policy is to be implemented in three phases. In Phase-I, banks were to formulate GB policies on in-house environmental performances by 2011; create a GB cell and high-powered committee to review environmental policies, strategies and programmes; allocate sufficient fund in annual budget for GB including climate risk fund; and a green office guide for internal environment management; take measures to save electricity, water and paper. Instead of relying on printed documents, online communication should be extensively used for office management, and employees should be encouraged to buy fuel-saving car. In Phase-II that would not exceed 2012, banks had to formulate specific policies for different environmentally sensitive sectors and fix achievable targets and strategies, and disclose those in their annual reports and websites. They were expected to set up green branches and increasingly rely on virtual meeting through video conferencing. 3.

BB BRPD Circular No. 12 dated October 08, 1997; BRPD Circular No. 21, November 10, 1999; and BRPD Circular No. 17 December 29, 2010.

4.

BB BRPD Circular No. 12 dated October 08, 1997

5.

BB DOS Circular No. 1, June 1, 2008

6.

BB ACSPD Circular No. 04, dated July 14, 2009.

7.

BB ACSPD Circular No. 9, July 08, 2010.

8.

BB BRPD Circular No. 2, February 27, 2011.

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The Phase-III, which is to be attained by 2013, requires banks to publish independent Sustainable Annual Report following internationally accepted format like GRI with the arrangement of external verification. The policy circular offers some incentives in the form of preferential treatments for the compliant banks: favouring compliant banks in calculating CAMELS rating and opening new branches; declaring top ten banks for their overall performances in GB. Moreover, BB circulated a Guideline on Environmental Risk Management (ERM) on January 30, 2011 prescribing a set of sector specific 'Environmental Due-Diligence Checklist' for financing environmentally sensitive sectors by banks and requires banks to establish and maintain a database of NPL due to environmental causes.

Section V Examining Achievements in Green Banking in Bangladesh Green banking in Bangladesh is still at a nascent stage. It got a momentum after the issuance of the 'Policy Guidelines for Green Banking' in February 2011. The implementation status of GB by BB and other banks is analyzed below. 1. In-house Green Practices by Bangladesh Bank Bangladesh Bank, the central bank of the country, has implemented a number of in-house green initiatives besides ensuring sustainable practices by commercial banks. The major in-house practices of BB include installation of 8 kilowatt solar panel on its roof top in 2010; use of energy saving LED bulbs; in-house online connectivity; online salary and other necessary advice, personnel file updated information, office orders, electronic-pass for visitors; e-recruitment; etendering; Enterprise Data Warehouse; EXP Online Monitoring System; Online CIB; Bangladesh Automated Clearing House; Enterprise Resources Planning; Bangladesh Electronic Fund Transfer Network; and National Payment Switch. 2. Green Banking Practices by Commercial Banks in Bangladesh Commercial banks of the country are trying to comply with the regulations of the Government and Bangladesh Bank. The status of commercial banks in this regard is discussed below. (a) Green Governance Table 1 shows that in response to the policy circular of BB, 47 banks (100 per cent) of the country formulated environmental policies; created GB cells and separate committee to oversee green activities of the bank as of December 2012 whereas only 16 per cent, 12 per cent and 4 per cent banks had environmental policy, GB cell, and separate committee respectively as on June 2011 (Habib, et al. 2011). The finding shows that BB's initiatives have brought remarkable change in the awareness and approach of banking communities.

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Table 1 Green Governance in Banks Banks

Policy Formulation

Formation of GB Unit/Posts

Formation of Separate Committee

No. of Banks

%

No. of Banks

%

No. of Banks

%

SCB s

4

100

4

100

4

100

DFIs

4

100

4

100

4

100

PC B s

30

100

30

100

30

100

FCB s

9

100

9

100

9

100

Total

47

100

47

100

47

100

Source: Based on BB (2012) information.

(b) Paperless Banking Paperless banking such as online banking, internet banking, mobile banking, ATM banking, etc., plays crucial role in promoting GB. Saving paper means saving trees, costs, and avoiding carbon footprint, saving the planet and improving profit. Table 2 shows that although 44 banks (93.62 per cent) out of 47 have online banking, only 41.05 per cent bank branches of all categories are providing online banking services. Table 2 Paperless Banking Banks

Online Banking No. of Banks

Mobile/SMS Banking

Internet Banking

No. of Online Online Branches Branches (%)

No. of Banks

Accounts No. of Accounts Facilitated Banks Facilitated (%) No (%)

ATM No. of Banks having

No. of No. of ATM ATM (Own) (Share)

SCBs

3

177

5.08

1

21

.0001

1

0.01

3

67

DFIs

2

77

5.28

0

0

00

0

0.00

1

7

4244 925

PCBs

30

3116

92.24

19

666916

2.62

22

7.73

29

4509

40408

FCBs

9

75

100

6

149541

35.71

1

53.70

6

155

7700

Total

44

3445

41.05

26

816478

1.22

24

3.20

39

4738

53277

Source: Based on BB (2012) information

All the branches of FCBs (100 per cent) are providing online banking followed by PCBs having 92.24 per cent online branches. A total of 26 banks (55.32 per cent) and 24 banks (51.06 per cent) have internet and Mobile/SMS banking facilities respectively. Accounts facilitated by internet and Mobile/SMS services of all banks are only 1.22 per cent and 3.20 per cent, respectively. Again, FCBs hold the dominant position in providing both the internet (35.75 per cent) and mobile banking (53.70 per cent) services. Among the local banks 26 PCBs and 1

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DFI have 100 per cent online banking facilities. Some 39 banks (82.98 per cent) have their own ATMs where the total number of own and shared ATMs are 4738 and 53277, respectively. (c) Branches/SME Centers/ATMs Powered by Solar Energy As a move towards GB banks have been adopting clean energy, 375 branches/ SME centers/ATMs of different banks were powered by solar energy as of December 2012. More specifically, 26 banks have been using solar power in their 214 branches. The IBBL has the largest number of 23 solar-powered branches followed by AAIBL and Sonali Bank Ltd. Table 3 Branches/SME Centers/ATMs Powered by Solar Energy Banks

No. of Branches Powered by Solar Energy

No. of Solar-Powered ATMs

No. of Banks

No. of Branches

No. of Banks

No. of Branches

SCB s

2

21

1

8

DFIs

2

22

0

0

21

169

5

150

PC B s FCB s

1

2

3

3

Total

26

214

9

161

Source: Based on BB (2012) information.

(d) Internal Environment Management Banks have limited initiatives regarding utility management (paper, water and energy saving). It is good to observe that now a good number of banks are thinking of introducing internal environment management. Almost all the banks prepared green office guide or at least some forms of green office instructions. However, banks having large branch network found difficulty in following the deadline of BB. (e) Environmental Risk Mitigation Banks have been complying with the Environment Conservation Act, 1995 requiring clearance from the Department of Environment (DoE) for obtaining banks credit for industrial units. However, the study found that such arrangement hardly works in protecting environment and banks are not ready to establish and maintain a database of NPL that are due to environmental reasons. Table 4 shows that after the issuance of ERM in 2011, banks have been doing environmental risk rating and rated 4394 and 12088 projects in 2011 and 2012 respectively. The number of rated projects financed and amount of financing to them have been increased by 158.75 per cent and 159.69 per cent, respectively between 2011 and 2012.

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Table 4 Environmental Risk Rating and Financing by Banks (BDT in Millions) Year 2 01 1 2 01 2 Increase (%)

No. of Projects Rated

No. of Rated Projects Financed

Amount Disbursed to Rated Projects

4 39 4

4 31 5

270951.14

120 88

111 65

703633.21

175.10

158.75

159.69

Source: Based on BB (2012) information.

(f)

Green Financing Table 5 Green Finance by Bank Group (BDT in Million)

B an k Grou p

Direct Green Finance

Indirect Green Finance

Total

SCB s

3513..10

2994.15

6507.25

PC B s

5623.74

173187.17

178810.91

FCB s

881.28

76517.03

77398.31

DFIs

1803.36

6401.70

8205.06

Total

11821.48

259100.05

270921.5

Source: Based on BB (2012) information.

Figure 1 Green Finance by Bank Group (BDT in Millions)

Some banks financed reasonably good amount in solar, bio-gas, bio-fertilizer, ETP and HHK in recent years. A few banks 9 designed project for the vulnerable areas affected by climate change. Financing for ETP, biogas plant, solar energy, 9.

For example, NBL financed over BDT 100 crore in drought prone areas for irrigation purposes; Mutual Trust, Agrani and NCCBL have also some programmes in the vulnerable areas.

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HHK, etc. are termed as direct financing and financing to projects having ETP is termed as indirect green financing. Table 5 shows that the amount of total green financing during 2012 was BDT 270921.53 million divided into BDT 11821 million and BDT259100 million in the forms of direct and indirect, respectively. Figure 1 shows that the PCBs hold a dominant position (66 per cent) in both the direct and indirect green financing. However, of total green financing about 96 per cent are in the form of passive indirect green finance. (g) Disbursement of Refinancing The study found that by 2012, 27 participatory banks signed participation availed refinance facility of BDT 854.46 million (43 per cent of total refinance fund) for solar energy, biogas and ETP. Whereas upto June 2011 the amount of refinance availed by five participatory banks was less than 7 per cent of the funds (Habib, et. al. 2011). Figure 2 shows that refinancing for solar power and solar equipments holds the major portion of the total refinance followed by bio-gas and HHK. (h) Training, Development and Awareness All the banks in the country have some sort of training arrangement for their employees. Most of the bank training institutes offer at least one session on GB in their training courses. However, banks mostly rely on BIBM and BBTA for educating their employees. The awareness of GB is still limited in the head offices of the banks; most of the bankers in the rural areas do not have a clear understanding of the concept of GB. A few banks have initiatives for awareness development of consumers as well. Figure 2 Disbursement of Refinance

(i)

Waste Management

Generally, banks do not have any concrete waste management policy till date. However, few banks have some inspiring initiatives for in-house waste management and financing. For example, HSBC recycles used papers to make envelopes for reuse; DBBL financed a project that produces quality organic fertilizer from fruits and vegetables waste. Some are distributing computers to different schools and organizations for reuse. Among the banks surveyed, Standard Chartered Bank has green tendering system for procuring durables.

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Disclosure and Reporting of Green Banking Activities

Generally, banks do not publish separate reports of their green activities or CSR programmes and do not use comprehensive standard formats such as the GRI. However, all banks have reported to BB, and also in their annual reports about their GB activities; some disclose their GB activities on their websites also. Two notable exceptions are HSBC and Standard Chartered Bank in Bangladesh, which published Corporate Sustainability Report and Annual Green Banking Report covering some environmental issues.

Section VI Problems on the Way to Implementation of Green Banking in Bangladesh Green Banking in Bangladesh is still in a nascent stage. The banking sector of the country has been facing a number of challenges in doing GB. Some of the challenges are inherent in the nature of the country, some are related to the banking sector, and others are bank specific. The country specific problems on the way to attaining sustainability objectives are poor enforcement of environmental laws, inability to adopt modern technology from the traditional ones, shifting red industries to appropriate locations, unaware of the end-users, etc. The DoE is not shouldering its responsibilities effectively. As a developing country, we cannot afford to adopt modern technology and abandon currently used ones. The red industries such as tanneries, pharmaceuticals, chemicals, etc. have not shifted to appropriate locations due to lack of political commitment of the government, and bureaucratic red tape. The consumer groups in Bangladesh are very vulnerable, and mostly unaware of green practices. The sector specific problems include reluctance of bank board and top management, lack of awareness and inability of bankers to formulate policy documents, strategic plan, sector specific environmental guidelines, lack of technical hand, etc. Most of the directors and senior people of the bank do not have right attitude and understanding of green banking. They generally want to perform their responsibilities simply by taking environmental clearance certificate which is not an effective measure in most of the cases. The time frame as per the policy guideline for GB of BB is applicable to all banks irrespective of their size. This has a problem of 'one size fits all' approach. The large banks especially the State-Owned Commercial Banks (SCBs) dominated by rural branches cover about half of the bank branches of the country. Moreover, most of the branches of SCBs do not have online banking facilities. As a result, they are facing more difficulty in following the policy guideline, especially in preparing the inventory of utilities, doing paperless banking, etc.

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Moreover, the absence of coordination among the commercial banks, Bangladesh Bank, DoE, law enforcing agencies, environmental NGOs, and the end-users is another critical problem in pursuing sustainable banking in Bangladesh.

Section VII Concluding Remarks Environmental concern is heart of Green Banking policies and strategies. In spite of many limitations the overall implementation status of GB in Bangladesh is satisfactory. The prevailing environmental laws are in place, but their effective enforcement is required. Political commitment can help in mitigating industrial pollution especially by shifting red industries to appropriate location. The electronic as well as print media can also play vital role in raising awareness among the end-users. Moreover, more trainings, workshops, and seminars can be arranged to educate people about sustainable banking. The deadline for implementation of different phases of green banking should be commensurate with the size and capacity of different banks. Finally, it is expected that with the coordinated efforts of BB, commercial banks, government, the banking sector will lead the move to a green economy in near future.

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2.

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4.

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8.

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Ullah: Green Banking in Bangladesh: Progress, Problems and Prospects

Annexure 1 List of Laws and Regulations by the Government of Bangladesh 1.

Water Pollution Control Ordinance, 1970.

2.

Environmental Pollution Control Ordinance, 1977.

3.

National Environmental Policy, 1992.

4.

National Environmental Management Plan, 1995.

5.

Bangladesh Environment Conservation Act, 1995.

6.

Environmental Conservation Rules, 1997.

7.

The National Water Policy, 1999.

8.

The Environmental Court Act, 2000.

9.

Noise Pollution (Control) Rules, 2006.

10. Medical Waste Management Rules, 2008. 11. Renewable Energy Policy 2008. 12. PRSP 2008: Caring for Environment and Tackling Climate Change. 13. National ICT Policy, 2009 (adopted). 14. Bangladesh Climate Change Strategy and Action Plan, 2009. 15. Environment Court (Amendment) Act, 2010. 16. Climate Change Trust Act, 2010. 17. Bangladesh Climate Change Resilience Fund, 2010. 18. National Action Plan, 2020. 19. Wildlife Protection Act, 2010. 20. Solid Waste Management Rules, 2011. 21. Hazardous Waste and Ship Breaking Waste Management Rules, 2011.

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