Future of Banking Industry in Bangladesh 

Modern civilization is currently struggling to survive the effects of climate change, but if there is anything to give us hope, it is the knowledge that humans has so far triumphed over every challenge it has faced since its inception. So, it has also found numerous potential answers to address the situation this time.One of the best ways to combat climate change is to reduce pollution and industrial carbon emissions, but changing businesses so that their operations are in line with environmentally friendly practices is not an easy process. This is due to the possibility of trading losses brought on by industry restructuring for the enterprises.

However, banks around the world have started providing green loans in the last ten years to promote firms. The significance of sustainable finance is also growing in Bangladesh, where residents of several coastal regions have already come to understand the negative effects of climate change. As a result, local banks have implemented a number of efforts to promote sustainable finance, enabling them to keep up with international lenders. For instance, The City Bank disbursed Tk 4,919 crore in green loans last year, an increase of 160% from the year before.The City Bank's managing director, Mashrur Arefin, stated that the lender has specific objectives to expand in the field of green and sustainable finance.

Along with its development partners, the lender is also offering cutting-edge finance solutions to help green entrepreneurs succeed, particularly for the poor and those who are most vulnerable to climate change, he continued.

Recently, the central bank began concentrating on providing green loans to cottage, micro, small and medium-sized enterprises (CMSMEs) as well as the agricultural industry. Between January and March of this year, banks and NBFIs disbursed Tk 2,339 crore in CMSME loans under the sustainable finance initiative. Green financing from lenders are given consideration for CMSMEs that address issues of inequality, inclusivity, investment in human capital, and communities protecting the environment from pollution.