Banks reluctant to finance biodiversity sector: BIBM

Staff Correspondent | Published: 00:00, Dec 07,2018

 
 

Country’s banks are less interested in financing the biodiversity sector, said Bangladesh Institute of Bank Management in a research report.
BIBM unveiled the research report at a programme titled ‘How to incorporate biodiversity issues in green banking in Bangladesh’ on Thursday.
BIBM and Bangladesh Poush, a non-profit, organised the event at the BIBM auditorium in Dhaka.
According to the BIBM report, the commercial banks give in the green banking 0.5 per cent of their total loans, whereas they are bound by laws to finance 5 per cent in the sector.
The bank financing in the biodiversity sector is less than that (0.5 per cent), it said.
Around 8-10 per cent of the banks finance the biodiversity sector and most of the finance go to the solar power sector.
Bangladesh Bank deputy governor SM Moniruzzaman said that the central bank was working on rules for financing green banking and biodiversity sector.
Bankers’ awareness of the issue is more important than the regulatory guidelines, he said.
BIBM director general Toufic Ahmad Choudhury said that green banking would get more attention in future.
He emphasised reducing bureaucratic complexities for financing green banking products.
BIBM chair professor and former Dhaka University economics department professor Barkat-e-Khuda said financing in the biodiversity sector should get priority.
He said that environment could be protected through financing the sector.
BIBM professor and director Shah Md Ahsan Habib said that green banking, which got less attention in the past, was changing dramatically in last few years.
Similarly, the biodiversity sector would see radical changes one day due to bankers’ awareness, he said.
Bangladesh Poush president M Sanowar Hossain said that the biodiversity management would be easier if the banks were involved in the sector.
Former Pubali Bank managing director Helal Ahmed Chowdhury said that there was a lack of awareness of green banking and biodiversity.
He also said that governance should be ensured to protect the environment.
Mutual Trust Bank managing director Anis A Khan said that non-government organisations, agent banking and other related organisations should also finance the biodiversity sector.
Blue economy has become a new sector for the bank financing and the bankers should focus on the sector, he said.

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