Green Banking and Sustainable Development in Bangladesh

Financial institutions can make a significant contribution to sustainable economic development. Characterized as “green banking,” banks can foster environmentally friendly practices as well as socially responsible business practices. This study explores the adoption pattern of various green banking activities by different types of banks in Bangladesh between 2014 and 2019, and the extent of banks' contribution to achieving sustainable development in the country. The secondary data used in the study reveals that many commercial banks (private and foreign) have been practicing green banking since 2014 and have instituted green financing policies that are environmentally friendly and sustainable. However, the state-owned commercial and specialized development banks have been more reluctant to adopt green banking practices. The study proposes a framework for adopting green banking practices that will contribute to attaining the Sustainable Development Goals (SDGs), along with policy changes to align banking operations with the SDGs.