Posted on 11th Dec 2024 01:05:51 AM Accounting
1.1 Prelude
Among crores of skies of the Universe ours is the only planet capable of providing residence for animals. The reason behind this is the green environment of the planet enriched by green plants. This represents a close relationship between the animals and plants. But due to destructive activities of man as well as their strong tendency to grasp the nature, the color of our environment is becoming faded and the bio-diversity, residing there, is becoming eliminated. Because of the emission of Carbon in density and due to green house effect, the temperature of the whole world is increasing day by day. As a result, every year we are facing cyclones, floods, long drought, and many other natural disasters. To come out from this hazardous situation, the Green Banking activities taken by millions of banks of the world may play a vital role. Banking sectors are the main source of money for different commercial projects and those are working in bringing the economic development of a country. Green banking is nothing but the operation of the banking activities giving especial attention upon the social, ecological and environmental factors aiming at the conservation of nature and natural resources. Green bank promotes environmental and social responsibility but operates as a traditional community bank providing excellent services to investors and clients. 1 A bank can grow itself as Green Bank through the application of environment friendly policies in every sector of its activities and through the elimination of Carbon foot prints 2 from its premises without changing main banking functions. Such bank acts as Ethical Bank, Moral Bank, Responsible Bank, and Sustainable Bank in a society. 3 Green banking can facilitate both the clients, human capital and stake holders. This also increases the goodwill of the bank as a part of its image building activities. Although this theme has been implemented in several developed countries keeping a slogan “Be Green, Go Green” before them, it has been started here in developing countries like ours in recent years. Several researchers have written about Green Banking. Among those most remarkable are Rashid (2010), Schultz (2010), Fenn (2012), Haque (2012), Hayder (2012), Hossan (2012), Khan (2012) and Millat (2012). This research is aimed at finding prospects of Green Banking in Bangladesh perspective.
1.2 The Background to the Study
There has been a much talk about the green banking approach in the arena of the Private Commercial Banks (PCBs) and the Public Commercial Banks and State Owned Banking corporations as it has been a buzz word for more than a decade.
In response to the global concern to safeguard the world our central bank also has circulated a policy guidelines for Green Banking, vide BRPD Circular No. 02 dated 27, February 2011.
The Guidelines segregated the Green Banking activities for implementing in 03 (three) phases.
1st Phase time lining was within 31st December 2011.
2nd phase is within 31st December 2012.
3rd phase will be within 31st December 2013.
Bangladesh Bank declared the following preferential treatments for the compliant banks:
Here it is very important to see whether or not the banks operating in Rajshahi are willingly taking steps to implement the policy and the real practices of GB.
Here I also intend to demonstrate in this section that how much concern and labors are giving the scheduled banks to implement the philosophy of green banking as well as whether this policy is helping to influence on involving clients.
1.3 Research Objectives
The major objective of the study is to analyze the prospects of green banking in Bangladesh. But the specific objectives of the study are to promote green banking among beneficiaries and in the banking sector. In particular, it is aimed to-
1.4 Scope of the Study
The scope of this study was based on the information available from the direct interview of executive employees engaged in banks. The analysis and interpretation prepared in this report was conducted on the executive of banks. The analysis included all the statistical analysis and their interpretations. Vertical and horizontal analysis was also included to show the overall condition of “Green Banking Activities” and its relation with different variables. Some suggestions and recommendations were also made in this report as this was the part of our study. To analyze and evaluate this paper we have concentrated on different determinants of green banking through the employees.
1.5 Limitation of the Study
Climate change is the most complicated issue the world is facing. Across the globe there have been continuous endeavors to measure and mitigate the risk of climate changes caused by human activities. Many countries over the world have made commitments necessary to mitigate climate change. As socially responsible corporate citizen, Bangladeshi banks have a major role and responsibility to support and supplement the government effort towards substantial reduction in carbon emission.
Normally we can consider the banks as environment friendly institution with their operational activities but it is important that the environment can be affected greatly by the activities of their customers. The banking sector is one of the major sources of financing for commercial projects 4 such as Brick field, Steel, Paper, Cement, Chemicals Fertilizer, Power, Textiles etc. Which cause maximum carbon emission? Therefore, the banking sector can play intermediary role between economic development and environment protection, for promoting environmentally sustainable and social responsible investment.
Green Banking refers to the banking business conducted in such areas and in such a manner that helps the overall reduction of external carbon emission and internal carbon footprint. To aid the reduction of external carbon emission, bank should finance green technology and pollution reducing projects. Internally the banking operations have considerably increased the carbon footprint of banks due to their massive use of energy e.g. lighting, air conditioning, electronic/electrical equipments, IT, high paper wastage, lack of green buildings etc.
Therefore, to adopting green banking, bank should adopt technology, process, and products which result in substantial reduction of their carbon footprint as well as develop sustainable business.
Now-a-days global warming is a key issue of the world and green banking might be the answer of this burning question. Assessing the available literature it has been found that no profound work has been done on this topic till now. As it is a very novice topic for country like Bangladesh. That’s why working on this contemporary topic is important for the greater interest of people. In fact, the work has enormous justification from theoretical and practical view point.
ABSTRACT
Green banking is the operation of the banking activities giving especial attention upon the social, ecological and environmental factors aiming at the conservation of nature and natural resources. Banks can be green through bringing changes in six main spheres of banking activities. Those are Change in Investment Management, Change in Deposit Management, Change in House Keeping, Change in the Process of Recruitment and Development of Human Capital, Corporate Social Responsibility (CSR), and Making Consciousness Among Clients and General Mass. Such an initiation can ensure a safe residence for upcoming generation. Bangladesh Bank has already issued circulars regarding this. Banks have already been asked to make their own green banking policy. Now we only need raising voice, keeping hand over hands, thinking in positive way and working in collective manner to make this a true.
CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Introduction
1.2 The Background to the Study
1.3 Research Objectives
1.4 Scope of the Study
1.5 Limitation of the Study
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Review of the Literature
2.3 Conclusion
CHAPTER THREE: METHODOLOGY
3.1 Methodology of the Study
3.2 List of selected banks for the study
CHAPTER FOUR: CONCEPT OF GREEN BANKING & POLICY GUIDELINE OF BANGLADESH BANK
4.1 Definition of Green Banking (GB)
4.2 Green Banking Stake Holders
4.3 Environment and Pollution
4.4 Urge to step ahead
4.5 Need for Green Banking (GB) Practices
4.6 Bangladesh Bank Policy Guideline for GB
4.7 Bangladesh Bank’s Recent Reforms Initiatives on GB
4.8 Bangladesh Bank’s Green Banking Initiatives
4.9 Commercial Bank’s Green Banking Initiatives
4.10 Steps in Green Banking
CHAPTER FIVE: ANALYSIS AND FINDING
5.1 Introduction
5.2 Comparative Analysis
5.2.1 Environmental Adoption
5.2.2 Online Banking
5.2.3 ATM Facilities
5.2.4 Mobile Banking
5.2.5 Green Finance
5.2.6 Climate Risk Fund
5.3 Major Green Banking Activities at a Glance Up to March 2012
5.4 Green Finance
5.5 Features of Top Ten Banks in Green Banking Activities
CHAPTER SIX: SUMMARY OF FINDINGS
6.1 Introduction
6.2 An overall picture of GB practices based on six criteria
6.3 An overall picture of GB practices based on another five criteria
6.4 Top 10 banks
6.5 Summary of Findings
6.6 Five Major Challenges
Recommendations
Conclusion
Bibliography
Appendix
Research, Report, Green, Banking, Practices, Perspective, Rajshahi, Ethical, Moral, Responsible, Sustainable, Bank, Society, Mobile, Finance, ATM, Bangladesh, Bank, Policy, Guideline, Environment, Pollution
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