Bangladesh Institute of Bank Management (BIBM) and The Sustainable Finance Department of Bangladesh Bank jointly organized the research workshop titled “Exploring barriers of sustainable finance in financial sector and policy propositions to remove the barriers”. The BIBM research found that 27 percent of the fund spent for sustainable development was handed over against false documents.
A paper titled “Exploring barriers of sustainable finance in financial sector and policy propositions to remove the barriers” was presented in the workshop by Dr.Shah Md. Ahsan Habib, Professor and Director (Training) of BIBM. Other members of the review workshop team are Tahmina Rahman, Assistant Professor, BIBM; Antara Zareen, Assistant Professor, BIBM; Tofayel Ahmed, Lecturer, BIBM; Rizwanul Karim, Assistant Director, Bangladesh Bank; Juwel Majumder, Assistant Director, Bangladesh Bank. BIBM Director General Dr Toufic Ahmad Choudhury chaired the programme.
Coordination among the policymakers is a must to get the expected outcome from sustainable finance, experts said yesterday. Bangladesh Bank and banking associations can jointly take initiatives for the sake of sustainable development of the country, experts suggested at a workshop at BIBM office in the capital.
There are various problems in sustainable financing and Bangladesh Bank is working to remove the barriers and loopholes in the policies, said SK Sur Chowdhury, deputy governor of the central bank. He said, BB segregated its 51 green banking products for refinancing program into 11categories which are: renewable energy, energy efficiency, solid waste management, liquid waste management, alternative energy, fire burnt brick, non-fire block brick, recycling & recyclable product, green industry, ensuring safety and work environment of factories and miscellaneous.
To boost up green financing, BB instructed banks and NBFIs to provide direct green finance as the following percentage of total funded loan disbursement on annual basis; Old banks-5% by 2015; NBFIs- 4% by 2015; new banks- 3% by 2015 . However, all scheduled banks and NBFIs were instructed to establish an independent Sustainable Finance Unit at Head Offices by abolishing previously established Green Banking Unit/Cell and CSR Unit/ Cell he also added.
The banking regulator can create a fund for sustainable development, said Khondkar Ibrahim Khaled, a former deputy governor of Bangladesh Bank. It will be difficult for the government to implement the crop insurance it introduced, as the new insurance will increase harvesting cost, said Khaled.
BIBM Supernumerary Professor Helal Ahmed Chowdhury emphasized skills development for sustainable financing. He suggested banks should allocate funds for training on sustainable financing.