5:15 pm - Friday May 13, 3768

FIs should focus on green business in lending policies

Banks and non-banking financial institutions should focus on Green Business while sanctioning loan to protect the environment from pollution, said speakers in a conference in Dhaka on Friday.

Speakers in the ‘SR Asia Second International Conference 2013’ on ‘responsible business conduct to safeguard the people’s issues and environment by managing hazardous waste’ urged the government to formulate environment-friendly policies in this respect.

SR Asia, CIRDAP and BangladeshBankTrainingAcademy jointly organised the two-day conference.

green-businessThe conference started with the welcome address of SR Asia Bangladesh country director Sumaya Rashid, reports New Age.

Bangladesh Bank deputy governor SK Sur Chowdhury inaugurated the conference where SR Asia international director Birendra Raturi, Dhaka Chamber of Commerce and Industries president Sabur Khan, CIRDAP director general Cecep Effendi, labour and employment ministry joint secretary Khondaker Mostan Hossain and Bangladesh Bank deputy general manager Khandaker Morshed Millat also spoke.

‘A successful waste management system is not possible only by the government’s initiative. The corporate bodies along with the business organisations have to include themselves in the process,’ SK Sur said.

‘We are working to turn our entire financial system into “green banking” to ensure responsible business and sustainable development, but we need more specific green policies for various sectors,’ he said.

The BB deputy governor said, ‘All banks have their general credit policy for the lending. But the nature of the different sectors is not similar in the environmental perspective. So, preparing a sector-specific environmental policy guideline for the banks is a big challenge.’

Bangladesh, being one of the most climate change vulnerable countries, does not have any other option but to adapt a system that will play an important role in coping with the varying environmental scenario, he said.

‘In this scenario, banks are required to protect their financing from the risks of a deteriorating environment and ensure sustainable banking practices,’ SK Sur said.

DCCI president Sabur Khan urged the central bank to adopt more flexible lending policy for sustainable development.

‘A pollution free environment is not possible without extensive exercise of green initiatives,’ he said.

Cecep Effendi said, ‘The green initiative can help reduce hazardous waste around us and formulating a policy framework is essential in this respect.’