Bangladesh Bank Training Academy Journal

Abstract

Keeping pace with the global initiatives for green banking and environmental risk management Bangladesh is also marching towards sustainable development by adopting dynamic banking. Relation between economic development and environmental issues are sometimes termed as paradoxical however both are complementary. This paper attempts to review the present regulatory framework for the promotion and implementation of green banking and ERM in Bangladesh. In this study the current implementation status of green banking and ERM in banks and FIs are examined with a view to recognize the level of the financial sector in adopting these policies. The findings of this paper are that remarkable progress has been evident in bank and FIs’ in-house green practices and online banking performance compared to their initiative for effective green finance by following ERM guidelines. Developing bank’s own ERM guidelines, green products and green business models are yet to take a considerable shape. Finally,Policy recommendations are indicated in this paper on the need for further study to develop a revised framework of green banking and ERM suitable for the financial sector of Bangladesh.