Space For Rent

Space For Rent
DHAKA Monday 17 February 2014, 5 Falgun 1420, BS 16 Rabius Sani 1435 HIJRI

BB eyes eco-friendly banking service
Publish Date : 2014-02-17,  Publish Time : 00:00,  View Count : 36
Saleem Samad
Bangladesh Bank (BB) is contemplating to provide exclusive banking services to those who will agree to carry forward the concept of 'Green Banking,' a new concept for protection of environment through business.
Under the concept, all private, autonomous and state-owned banks have now to think whether to serve those entrepreneurs who are apparently responsible for causing damage to environment, by prioritising their business needs, said, BB Governor Dr. Atiur Rahman said.
Dr Atiur Rahman said so while launching his new book on  "Manabik Banking" at a ceremony at the National Museum organised by the publisher Annya Prakash on Saturday.
He said, the entrepreneurs should refrain from dumping hazardous wastes which are harmful not only to the people, but also to animals and plants. The hazardous waste includes hospital wastes, industrial wastes, chemical wastes and other wastes.
He suggested that from now onward the entrepreneurs, who need service and assistance of banks, will need to sign agreement that they will abide by the compliances of the green banking and will not harm the environment and ecology in promoting their business.
"Even if a single tree is felled for business development or any other reasons, that entrepreneur will not be eligible for banking services," Dr. Atiur firmly said.
To get the idea implemented in-house, a 'Green Office Guide' or at least a set of general instructions has been circulated to the bank employees for efficient use of electricity, water, paper and reuse of equipments, which is monitored by the Green Banking and CSR Department in central bank.
Meanwhile a Policy Guidelines for Green Banking has been finalised and will be implemented in three phases by the financial institutions (FIs).
To set up Green Branches, the bank's have to ensure maximum use of natural light, use of renewable energy, use of energy saving bulbs and other equipments, reduced water and electricity use, use of recycled water etc. A Green Branch will be entitled to display a special logo approved by Bangladesh Bank.
Elaborating on the green banking, Dr. Atiur explained that the eco-friendly business activities and energy efficient industries will be given preference in financing by FIs.
Environmental infrastructure such as renewable energy project, clean water supply project, wastewater treatment plant, solid and hazardous waste disposal plant, bio-gas plant, bio-fertilizer plant would be encouraged and financed by FIs.
FIs shall comply with the instructions found in the guidelines on Environmental Risk Management (ERM) in consideration of a part of the Green Banking Policy. FIs shall incorporate Environmental and Climate Change Risk as part of the existing overall credit risk methodology prescribed to assess a prospective borrower from both credit and environmental risk point of view.
This will include integrating environmental risks in the checklists, audit guidelines and reporting formats. All of this will help to mainstream Environmental Risk that cover possible sources of Environmental Risk such as Land use, Climate change related events (cyclone, drought), animal diseases/pathogens such as avian influenza, so
lid waste including waste feed, animal waste, carcasses, sediments, wastewater discharges, hazardous materials, etc will be reviewed under Environmental Due Diligence (EDD) checklists.
A FI should determine achievable targets and strategies, and disclose these in their annual reports and websites for green financing and in-house environment management as well.

Editor : Iqbal Sobhan Chowdhury
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