2019-10-10 18:29:52 BdST
Bangladesh accelerates ‘progress’ in sustainable finance reforms
Bangladesh has made significant progress in banking reforms among 38 countries to drive development and fight climate change, says the second Global Progress Report of the Sustainable Banking Network (SBN).
The report released on Thursday says these reforms require banks to assess, manage, and report on environmental, social and governance risks in their lending operations.
Bangladesh is advancing the implementation of a sustainable banking framework over the past few years. Since 2011, the Bangladesh Bank has developed several policies to promote sustainable finance. The central bank has formed policy guidelines on green banking in 2013 and guidelines on environmental and social risk management in 2017.
These guidelines encourage banks and financial institutions to incorporate environmental and social risk management into their credit activities and to publish green banking and sustainability reports.
"It is aspiring for us to observe the remarkable progression of Bangladesh among its peers in the SBN global report. The report also provides us worthy snapshot of spaces to improve further through innovation in the coming years," said Khondkar Morshed Millat, general manager of Sustainable Finance Department of the Bangladesh Bank.
"SBN members have demonstrated that transforming financial markets toward sustainability is possible," said Georgina Baker, Vice President of the International Finance Corporation, World Bank Group.
"Emerging markets are at the forefront of this shift – and SBN's tools and guidance have laid the groundwork for more countries to follow suit," she added.
Established in 2012, the SBN now represents 53 financial regulators and banking associations from 38 emerging countries committed to sustainable finance. SBN's member countries represent $43 trillion—or 85 percent—of emerging market banking assets.
Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.