BB sets new target on banks’ green, sustainable financing
The basis for setting annual targets for eco-friendly financing and sustainable financing will be determined by deducting employee loan, total classified loan and credit card loan from outstanding loan and advance balance based on December 31 of the previous year
The Bangladesh Bank has set new plans for bank loan disbursements in green and sustainable financing.
The central bank's Sustainable Finance Department (FSD) issued a circular for banks in this regard Wednesday.
According to the circular, the basis for setting annual targets for eco-friendly financing and sustainable financing will be determined by deducting employee loan, total classified loan and credit card loan from outstanding loan and advance balance based on December 31 of the previous year.
Previously the central bank on 11 January said, this annual target for eco-friendly and sustainable financing would be determined on the basis of net outstanding loan and advance balance (excluding employee loan and total classified loan from total outstanding loan and advance balance) as on 31 December of the previous year.
In order to expedite environment-friendly financing and sustainable financing, banks and financial institutions asked to set up "Dedicated Sustainable Finance Help Desk" in their potential branches and conduct "Help Desk" activities synchronizing with their Sustainable Finance Unit at the head offices.
According to the Sustainable Finance Policy published by the Central Bank last December, green finance should promote greener technology in other sectors through its lending products.
