ABSTRACT
The financial and economic development of a country is inevitably linked to its vulnerability to environmental degradation. Developing countries are the worst victims of world environmental pollution. Thus, the development sustainability of these countries is at stake. Being one of the important stakeholders of the economy, the financial sector of Bangladesh is playing a key role in protecting the environment through practicing green banking activities. ‘Green banking’ is a new concept of conducting banking business, which requires the banks to consider environmental and ecological factors in their operations. ‘Green financing’ is a branch of green banking activities, which requires banks to formulate financing decisions in a way where eco-friendly business activities and less environmentally hazardous industries will be given preference, and at the same time, environmental infrastructure should be encouraged and financed. This chapter presents a descriptive study of green banking, particularly green financing, in Bangladesh. Based on the annual reports on green banking activities of Bangladesh Bank and 47 listed banks in Bangladesh, and other secondary sources of information (published papers), the study shows the present status and effectiveness of green financing activities. It also presents a comparative analysis of green banking practices in different types of banks operating in Bangladesh. Finally, the study suggests that the practice of green financing activities should be expanded at a greater extent, not only in Bangladesh, but also in other countries, ensuring proper monitoring, coordination, and supervision.
