Posted on 17th Dec 2024 12:51:50 AM Banking, Finance
1.1 Introduction
Green banking practice is new dimension in banking sector. The thought of “Green Banking” comes from CSR (Corporate Social Responsibility). Bangladesh has faced a great problem due to environmental changes. Global warming is rising day by day due to indiscriminate use of natural resources such as petroleum, coals etc. Because of global warming, the polar ice is being melted every moment and it creates sea level rise. The low-lying land of Bangladesh will be gone under water in near future. So it is high time, Bangladesh should come forward to take some effective steps to reduce this unwanted situations. Deforestation should be prevented so that a green environment will sustain.
Bank as a corporate body must have some responsibilities regarding this matter. In my thesis, I have taken small number of banks’ branches in Rajshahi City. In my research O want to know the green banking practices by the major bank branches in Rajshahi City. The amount of attractive facilities and the engagement of customers to those facilities are satisfactory or dissatisfactory level. The amount of electronics card issuance by the banks and the responses to the customers are also examined through my research.
The term “green banking” generally refers to banking practices that foster environmentally sustainable internal processes minimizing GHG (Green House Gas) emissions. Green banking thus involves a two pronged approach. Firstly green banking focuses on the green transformation of internal operations of all banks. It means all the banks should adopt appropriate ways of utilizing renewable energy, automation and other measures to minimize carbon footprint from banking activities. Secondly, all bands should adopt environmentally responsible financing; weighing up environmental risks of projects before making financing decisions; and in particular supporting and fostering growth of upcoming green initiatives and projects.
1.2 Motivation behind choosing the topic
As a student of business school, I have a great eagerness in the field of green banking or environment friendly banking activities adopted by the Rajshahi City’s bank branches. Moreover, I want myself to be a successful banker in future. This research work will enrich my knowledge about green banking significant in banking sector. For the conducting of research work, I am to go thorough different books, reports, researches and articles on the topic. It enhances my understanding of green banking as well as informs the readers of this research the performance of green banking made by different bank branches of Rajshahi City.
1.3 The objective of research
Every research is being initiated by considering a specific aim. I have also initiated my research with an attempt to emerge some underlying factors related to the green banking performance in Rajshahi City. This topic is very important to the people of Rajshahi who are engaged with banks and banking system. However, very few researches have been conducted regarding this field especially concerning Rajshahi City. So the study tries to examine the performance of some selected bank branches with regard to the green banking activities. Besides, the study tries to provide knowledge for the interested people who are not informed about the green banking and its activities. Other objectives are as follows.
1.4 The research questions
In my research, I would like to present you answers of some questions or factors. The questions or factors are-
1.5 Hypothesis
The research will be conducted upon some hypothesizes. The hypothesizes are given below.
1.6 Literature review
In the age of the global warming and climate change, delivering right services are not enough for clients but also practicing green banking concept for friendly environment issue as the corporate social responsibility is inevitable to the target customers or clients and for sinking of global warming.
Green banking at UCBL, this paper exerts some policies which are regarding such that Green banking policy, Green banking unit and it has formulated Environmental Risk Management (ERM) Policy and Formulation of a draft ‘Green Office Guide’ for the purpose of development of In-house Environment Management is at the final stage. It also describes the Green Banking Guidelines of Bangladesh Bank.
Md. Touhidul Alam Khan wrote an article on Green Banking: Go green, Think green. In his article he said that “in a word we can say that green banking refers to the attempt to the banking sectors to consider social, ecological and environmental factors with an aim to protect the environment and conserve natural resources”.
1.7 Research methodology
The necessity of this section is to show how the data will be collected by which method and source and the process of analyzing the data. My analysis is a time series analysis. So information is regarding year 2011 to 2013. I would like to show here the behavior of customers with regard to increase of e-banking products and the performance of green banking of some selected bank branches. In my sampling I will select bank branches combining some government and private banks through which real phenomenon will be discovered.
Because of the nature of the study, qualitative as well as quantitative data are applied here. Here mean standard deviation and coefficient of variation of factors of different branches will be made. I will try to find out the beta coefficient for evaluating the performance. If possible analysis of variance (ANOVA) may be run.
1.7.1 Source of data and method
Primary and secondary sources of data are being used here. Questionnaire is formed to gather primary data.
1.7.2 Primary source
Through the questionnaire method I would like to collect data from bankers. It would be raw data depending upon above mention factors. To collect data, I will take 7 to 10 days for interviews of different branch bankers and general customers. The sample size consists of 10 banks and 15 clients through a questionnaire all primary data are collected.
1.7.3 Secondary source
The secondary sources for the research are different books written on green banking, investigation reports, past researches, newspapers, journals, electronic publications and other indices on green banking.
1.7.4 Time horizon
This research will be covered 3 year data from 2011 to 2013. Three years data are collected through questionnaire method and other secondary sources.
1.7.5 Measurement
Considering above mentioned hypothesis and research questions, the research would be a simple explanatory research. There is little scope for using statistical mechanism. I shall use percentage based on amount of works is done through online, mobile and deposits and disbursed money through computer and transfer deposits from an A\C to another branch A\C. I shall use actual number of ATM booths in city for 3years for measurement. I shall design a questionnaire in such a way that I can quantify the satisfaction. Suppose No satisfaction-0, Poor-1, Average-2, Full satisfied. In this way level of satisfaction is quantified. Questionnaire is made for two parties, one for bankers and another is for clients of banks.
1.7.6 Unit of analysis
As it is an explanatory type research, few statistical tools are implemented here. Here mean standard deviation and coefficient of variation of factors of different branches will be made. If possible I will try to find out the beta coefficient for evaluating the performance. If possible analysis of variance (ANOVA) may be run. I shall examine the hypothesizes through t-test, z-test.
1.8 Findings
In this case I will discuss about the findings of my research work on green banking performance of selected bank branches of Rajshahi city. Some recommendations will be proposed through the examination of performance so that better performance may be attained.
1.9 Limitation of the research
Every research has some limitations. My research is not beyond of them. Some of the limitations are listed below.
1.10 Conclusion
Bangladesh Bank has issued different circulars time to time regarding modernization of Green Banking practice and its proper implementation. If every bank formulate their work plan following those rules and works collectively only then it will be possible to complete implementation of Green Banking activities in Bangladesh. It will then help earth in regaining Green Environment and ensure safe residence for our off-springs. Only the collective approach of both the clients and bankers can make this a true.
Banks are responsible corporate citizens. Banks believe that every small ‘GREEN’ step taken today would go a long way in building a greener future and that each one of them can work towards to better global environment. ‘Go Green’ is an organization wide initiative that moving banks, their processes and their customers to cost efficient automated channels to build and consciousness of environment, nation and society Green Banking can give following benefits.
Basically Ethical banking avoids as much as paper work, you get go green credit cards, go green mortgages and also all the transactions done through online Banking.
Creating awareness to business people about environmental and social responsibility enabling them to do an environmental friendly business practice.
They follow environmental standards for lending, which is really a good idea and it will make business owners to change their business to environmental friendly which is good for our future generations. Overall Green banking is really a good way for people to get more awareness about global warming; each businessman will contribute a lot to the environment and make this earth a better place to live. Thanks to green banking. Until a few years ago, most traditional banks did not practice green banking or actively seek investment opportunities in environmentally-friendly sectors or businesses. Only recently have these strategies become more prevalent, not only among smaller alternative and cooperative banks, but also among diversified financial service providers, asset management firms and insurance companies. Although these companies may differ with regard to their stated motivations for increasing green products and services (e.g. to enhance long-term growth prospects, or sustainability principles on which a firm is based), the growth, variation and innovation behind such developments indicate that we are in the midst of a promising drive towards integrating green financial products into mainstream banking.
This concept of “Green Banking” will be mutually beneficial to the banks, industries and the economy. Not only “Green Banking” will ensure the greening of the industries but it will also facilitate in improving the asset quality of the banks in future.
ABSTRACT
Green banking practice is new dimension in banking sector. The thought of “Green Banking” comes from CSR (Corporate Social Responsibility). Bangladesh has faced a great problem due to environmental changes. Global warming is rising day by day due to indiscriminate use of natural resources such as petroleum, coals etc. Because of global warming, the polar ice is being melted every moment and it creates sea level rise. The low-lying land of Bangladesh will be gone under water in near future. So it is high time, Bangladesh should come forward to take some effective steps to reduce this unwanted situations. Deforestation should be prevented so that a green environment will sustain.
Bank as a corporate body must have some responsibilities regarding this matter. In my thesis, I have taken small number of banks’ branches in Rajshahi City. In my research O want to know the green banking practices by the major bank branches in Rajshahi City. The amount of attractive facilities and the engagement of customers to those facilities are satisfactory or dissatisfactory level. The amount of electronics card issuance by the banks and the responses to the customers are also examined through my research.
To the context of developing new green products, certain determinants could be examined. The banks in Rajshahi may compare some specific measures to improve their green banking practices whether those could be meaningful for developing new green product or construct new green branches. Consideration of stakeholder’s influences or perceptions is one of the major criteria that might be useful for banks to accelerate the development process. However, banks need to work hard for creating awareness about the importance of green mechanism among the stakeholder groups at first and bring them into formal planning process as these stakeholders are also important for the development of environmental crisis. Banks really need to reduce the continuous distrust between the banks and its internal and external environmental stakeholders. It is necessary to have open dialogues and direct communications between stakeholders to develop cooperative environmental relationships which may help banks to develop new green products. So, every bank has to participate in the new green product development process with greater involvement from stakeholders and contribute to green banking practices in today’s extreme national and global banking competition.
CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Introduction
1.2 Motivation behind choosing the topic
1.3 The objective of research
1.4 Research questions
1.5 Hypothesis
1.6 Literature review
1.7 Research methodology
1.7.1 Source of data and method
1.7.2 Primary source
1.7.3 Secondary source
1.7.4 Time horizon
1.7.5 Measurement
1.7.6 Unit of analysis
1.8 Findings
1.9 Limitation of the research
1.10 Conclusion
CHAPTER TWO: GREEN BANKING
2.1 What is Green Banking?
2.2 What are the activities of Green Banking?
2.3 Few Examples of Green Banking Practices in Bangladesh
2.4 Conclusion
CHAPTER THREE: GREEN BANKING IN RAJSHAHI CITY CORPORATION AND MY OBSERVATION
3.1 Introduction
3.2 For bankers’ prospective
3.3 Clients’ perspective
3.4 Conclusion
CHAPTER FOUR: FINDINGS AND RECOMMENDATIONS
4.1 Findings
4.2 Recommendations
CHAPTER FIVE: CONCLUSION
References
Research, Report, Green, Banking, Performance, Selected, Bank, Branches, Rajshahi, City, Motivation, Bankers, Clients, Prospective
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