Green BankingPresentation on

Sl No. Name ID No.01 Saikat Das 1130411202 Mohammed Sanjidul Anwar 1130403903 Hossian Md. Arshad Ullah 1130405004 Mahmuda Airin 11304124

Team Members:

BBA 4th Year, Final Term | Session 2010-11 | Department of Marketing | University of Chittagong

The Concept of Green Banking

To be GREEN is to

be

Socially Responsibl

e

Sustainable

Ethical

The Concept of Green Banking

Green Bankin

g

Banking practices that bring in

Social Welfare

Promoting Environment

Friendly Banking Practices Banking practices

that contribute towards

protecting the environment

Features of Green Banking

• Automation and online banking• Social safety and security • Consider risk factors regarding environmental

conditions while providing loans• Sustainable and green growth• Implements Environmental Due Diligence (EDD) • Reduces cost and energy

Purpose of Green Banking

Bank’s Objective:

Profit Only Profit with Responsibility

Bank’s Motive:

Profit, Profit, and Profit

Planet, People, and Profit

Coverage of Green Banking

Reasons of Practicing Green Banking

• Proper utilization of organizational resources• Sustainability• Minimization of paper works• Cost and time efficiency

Some Green Banking Slogans of Banks

Benefits of Green Banking

Major benefits are…• Avoids paper works AMAP• Creates a sustainable sense of banking service• Environmental standards for lending• Less interest rate for Green Banking projects• High CAMELS Rating by BB

Steps in Green Banking

1. Going Online2. Using Green Checking Accounts3. Green Loans for Home Improvements4. Power Saving Equipment5. Saving Paper6. Green Credit Cards7. Use of Solar and Wind Energy8. Mobile Banking

Tools of Green Banking

Online & Mobile Banking

Green Credit & Investment

Green Credit Cards

Green Mortgages

Green banking is not only limited to...

Green BankingProcessesProducts & ServicesStrategies

Green Processes

Supply Chain Management

Enterprise Resource Planning

Customer Relationship Management

Sourcing and Procurement

Product Life Cycle

Management

Green Products & Services

Electronic and telephone banking

Automatic payments

Electronic (paperless) statements

Offering and promoting mutual funds

Offering a special line of credit

Offering credit cards

Green Banking Strategies

• Creating awareness• Assess different processes to be green• SMART Green Goals i.e. Specific, Measurable,

Attainable, Realistic, and Timely• Encourage, motivate, and energize the

workforce• Monitor the progress• Publicize your endeavors towards being green

Phases of Green BankingPhase-I (Foundation):• Policy Formulation and Governance• Incorporation of Environmental Risk in CRM• Initiating In-house Environment Management• Introducing Green Finance• Creation of Climate Risk Fund• Introducing Green Marketing• Online Banking• Supporting Employee Training, Consumer Awareness and

Green Event• Disclosure and Reporting of Green Banking Activities

Phases of Green BankingPhase-II (Intensification):• Sector Specific Environmental Policies• Green Strategic Planning• Setting up Green Branches• Improved In-House Environment Management• Formulation of Bank Specific Environmental Risk Management

Plan and Guidelines• Rigorous Programs to Educate Clients• Disclosure and Reporting of Green Banking Activities

Phases of Green BankingPhase-III (Diversification):• Designing and Introducing Innovative Products• Reporting in Standard Format with External Verification• Reporting Green Banking Practices on Quarterly Basis• Being Ethical and Environment Friendly• Bangladesh Bank’s In-house green activities• Comparative Analysis – i) Environmental Adoption, ii) Online

Banking, iii) Mobile Banking, and iv) Green Financing

In House Green Activities of Bangladesh Bank

Top Ten Green Banks of Bangladesh

1. Bank Asia Limited2. Standard Chartered Bank Limited3. Dutch Bangla Bank Limited4. Trust Bank Limited5. Eastern Bank Limited6. Mutual Trust Bank Limited7. Islami Bank Bangladesh Limited8. Pubali Bank Limited9. Shahjalal Islami Bank Limited10.Prime Bank Limited

Source: Bangladesh Bank-Green Banking Report, 2012

Green Banking Initiatives

Subject March2013

June 2013

September2013

December2013

No. of Rated Projects 8117 8063 7615 8188 No. of Rated Projects Financed 6733 7238 6152 7554 Amount Disbursed against Rated Projects (Taka in Million)

338926.03 433501.31 404099.46 391062.77

No. of Branches Powered by Solar Energy 228 248 253 311 No. of ATM/SME Unit Offices Powered by Solar Energy

183 184 185 189

No. of Online Branches 3714 3988 4060 4496 Utilization of Green Finance (Taka in Million)

70326.45 86848.83 84978.55 105971.66

Utilization of Climate Risk Fund (Taka in Million)

20.56 103.82 15.41 175.63

Utilization of Green Marketing, Training and Development (Taka in Million)

34.88 35.73 45.96 50.46

GREEN BANKING ACTIVITIES AT A GLANCE (DECEMBER, 2013)

Source: Quarterly Review Report on Green Bangladesh, December 2013, Bangladesh Bank

Online Banking

Types of banks State owned commercial banks (SCBs)

Private commercial

banks (PCBs)

Foreign commercial banks (FCBs)

Specialized development banks (SDBs)

Total

Total number of Branches

3,469 3224 73 1433 8199

Number of branches with online facility

168 2925 73 60 3226

% of branches with online banking facility 4.84 % 90.73 % 100.00 % 4.19 % 39.35 %

Table: Status of Online Banking

Source: Bangladesh Bank

Mobile Banking

• 23 Banks have been given license to provide mobile financial services (MFS)

- 14 banks have already started their operations• Average rate of growth: 15% per month.

Green Finance

Finance for:• ETP• Bio-gas plant• Solar panel/renewable energy plant• Hybrid Brick field• Waste management plant• Mashrum project• Horticulture, forestation etc.

Need of the Hour!

Support national initiatives

Restructure the bank office operation

SMART Green Goals

Environmental Management System

Environmental risk and liability guidelines

Fostering Green Banking

Primary Objectives: Improving the energy and carbon

efficiency Estimate energy usage and wastage Comparative assessment of banks Recognize and reward

Green Coin

Rating