Introduction:

The word Green Banking is very common concept in the world. Global warming is a great
issue in protection of hygienic society. There is high possibility of playing significant role
of Green Banking in the global warming issue. The green banking concept is evolved in
western countries and now is practiced in most of the countries in the world. It indicates
endorsing environment - friendly practices and reducing carbon footprint from banking activities.
Green banking is not just another corporate social responsibility activity; it is all about going
beyond to keep the world livable without any significant damage. Green banking that considers
all the social and environmental factors is also called ethical banking. The main objective of
green Banking is to ensure the use of organizational resources in favor of the environment and
society. Green banking as a concept is proactive and smart way of thinking with a vision
for future sustainability of our only Spaceship earth. It evaluates all the factors before giving
the loan whether the project is environment-friendly and has any implication on the future people
and planet. Green finance as a branch of green banking makes significant contribution to the
transition to resource efficient and low carbon industries i.e green industry and green
economy in general. Green banking is one of the global initiative by a group of stakeholders to
put aside environment. Green banking or ethically responsible banks do not only advance their
own initiatives but also affect socially responsible behavior of other business.
Global warming, which is one of the most burning & discussed issues, has the worst impact on
the climate of the planet as a whole. The rapid change in climate will be too great to be adapted
by the eco-systems, since the change have already made direct impact on biodiversity,
agriculture, forestry, dry land, water resources and human health. As such, issue of global
warming calls for a global response. Due to unusual weather pattern, rising greenhouse gas,
declining air quality etc. society demands that business also take responsibility in safeguarding
the planet.
Bangladesh Bank Governor argued that all need to change mindset about environmental
issues for making a better future through greening financial transactions. To save our planet it is
the time to take initiative for green banking. The banks should give priorities in providing
loan to the sectors that encourage environmental practices.








What is Green Banking?
Green Banking defined as promoting environmental-friendly practices and reducing carbon
footprint from banking activities. 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 banks should adopt environmentally responsible financing; weighting up
environmental risks of project, before making financing decisions; and in particular supporting
and fostering growth of upcoming GREEN initiatives and projects.
Generally Green banking coverage includes:
1. Sustainable banking
2. Ethical banking
3. Green mortgages
4. Green loans
5. Green credit cards
6. Green savings accounts
7. Green checking accounts
8. Green money market accounts
9. Mobile banking
10. Remote deposit
11. Waste Management
12. Roof Gardening
13. Green Financing

Concept of Green Banking:
Todays business is all about being green. From Walmart to Apple, everyone is talking about
how green their approach, packaging, or methods are. But green business is really in its infancy,
and the future of being green will no doubt distill down to some very real and definable goals
and practices. Bankers may question the relevance of the green movement to their own
bank. Many might agree that it makes sense financially and ethically to promote conservation,
but is there such a thing as a green value for bank customers?
A green bank is a bank that promotes environmental and social responsibility but operates
as a traditional community bank and provides excellent services to investors and clients. The
term green banking is being heard more often today as more people look for ways in
which they can help the environment. A green bank is one that has adopted sustainability
practices across all lines of the organization; the employees, facilities, products & services,
and governance. Green banking, which considers all the social and environmental factors,
is also called 'ethical banking'. Ethical banks started with the aim of protecting the
environment. Green banking helps to create effective and far-reaching market-based
solutions to address a range of environmental problems, including climate change, deforestation,
air quality issues and biodiversity loss, while at the same time identifying and securing
new business opportunities that benefit customers. Green banking gives more weight to
environmental factors. Its aim is to provide good environmental and social business practices.
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.




Bank Customer



Environment


Green Banking Wheel



Benefits of Green Banking:
The banks should go green and play a pro-active role to take environmental and ecological
aspects as part of their lending principle, which would force industries to go for mandated
investment for environmental management, use of appropriate technologies and
management systems. A truly green bank can reduce their carbon footprint by building more
efficient branches, implementing more energy-efficient operational procedures, offering
transportation services for their employees and carefully screening their lending in environment-
sensitive industries. Banks can also support eco-friendly groups, offer green lending and
raise money for local environment initiatives. A green banking movement such as less
paper is good for the environment where customers make paperless deposits, withdrawals
and remittances. A bank can going green through, no paper statements, fewer letters to open,
no Cheque book or paying-in book for your current account and no paper-based marketing.