BSS, Dhaka :
All banks and financial institutions (FIs) must provide green projects with direct financing from January 2015, said Bangladesh Bank (BB) governor Dr Atiur Rahman on Saturday.
Currently, banks and FIs are funding green projects from a BB-sponsored re-financing scheme.
The central bank earlier in September issued a circular setting a target of direct green financing for banks and FIs to ensure financing eco-friendly project.
The circular set the target at 5.0 percent of the total disbursed loans by the scheduled banks operating in the market since early 2013, at 3.0 percent for the nine new banks and 4.0 percent for FIs. The rate will be 5.0 percent for all banks and FIs from January 2016.
Referring to the target, Dr Atiur said green transformation at large scale is mandatory for ensuring environmental sustainability, advancement of green economy and consequentially reducing greenhouse gas emission and climate change vulnerabilities.
The governor was addressing the inaugural session of the “Green Finance for Sustainable Development” seminar at the CIRDAP International Conference Centre in the capital city. A non-government organisation, NeoSTAR Innovation organised the seminar.
Referring to various steps of the central bank to drive green financing, the governor said these endeavors have been more expanded in the last couple of years with setting up a separate department to address the green issues in more widened manner.
All banks and financial institutions (FIs) must provide green projects with direct financing from January 2015, said Bangladesh Bank (BB) governor Dr Atiur Rahman on Saturday.
Currently, banks and FIs are funding green projects from a BB-sponsored re-financing scheme.
The central bank earlier in September issued a circular setting a target of direct green financing for banks and FIs to ensure financing eco-friendly project.
The circular set the target at 5.0 percent of the total disbursed loans by the scheduled banks operating in the market since early 2013, at 3.0 percent for the nine new banks and 4.0 percent for FIs. The rate will be 5.0 percent for all banks and FIs from January 2016.
Referring to the target, Dr Atiur said green transformation at large scale is mandatory for ensuring environmental sustainability, advancement of green economy and consequentially reducing greenhouse gas emission and climate change vulnerabilities.
The governor was addressing the inaugural session of the “Green Finance for Sustainable Development” seminar at the CIRDAP International Conference Centre in the capital city. A non-government organisation, NeoSTAR Innovation organised the seminar.
Referring to various steps of the central bank to drive green financing, the governor said these endeavors have been more expanded in the last couple of years with setting up a separate department to address the green issues in more widened manner.
