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Sustainable banking in Bangladesh has made remarkable strides in recent years, transitioning from a niche concept to a core strategic priority within the financial sector.

Small and medium enterprises (SMEs) are often described as the backbone of Bangladesh’s economy, employing millions and driving growth in every corner of the country.

In the banking sector of Bangladesh, the journey towards sustainable and green banking started a long time ago with the initiative of Bangladesh Bank.

The Daily Star (TDS): How would you assess the current state of sustainable banking in Bangladesh?

Over the past decade, Bangladesh’s sustainable and green banking landscape has improved significantly, led by Bangladesh Bank’s pioneering policies and clear mandates.

The current stage of sustainable banking, not only in Bangladesh but globally, is still in its early and evolving phase.

The banking sector in Bangladesh has long been associated with financial discipline, professionalism, and a highly structured corporate culture.

Sustainable finance is emerging as a defining theme for the banking industry in Bangladesh, a country that is acutely vulnerable to the impacts of climate change.

Sustainable Finance in Bangladesh

Bangladesh has made very good progress in sustainable and green banking.

Bangladesh now has a well-structured foundation for green banking, underpinned by strong commitment from the central bank.

The Daily Star (TDS): How would you assess the current state of sustainable banking in Bangladesh?

The Daily Star (TDS): How would you assess the current state of sustainable banking in Bangladesh?

Over the past five years, driven by Bangladesh Bank’s directives, low-interest loan facilities, preferential treatment from correspondent banks and multilateral lenders, and their own initiatives, banks and non-banking financial institutions (NBFIs) have increasingly prioritised environmentally friendly and sustainable projects for lending.

The Daily Star (TDS): How would you assess the current state of sustainable banking in Bangladesh?

The Daily Star (TDS): How would you assess the current state of sustainable banking in Bangladesh?