BIBM: 50 banks disbursed only 0.5% credit as green funds in 2016

More than 50 commercial banks of the country have disbursed only 0.5% of the their total credit as green financing or sustainable banking in 2016, according to a study of the Bangladesh Institute of Bank Management (BIBM). The study report titled “Fund Transfer Pricing of Commercial Banks: Status and Measures for Implementing in Banks of Bangladesh,” was presented in Dhaka on Sunday. The report said only seven banks prepared the sustainable financing report following the Global Reporting Initiatives (GRI) guideline and submitted it to the Bangladesh Bank. BIBM Associate Professor Mohammad Alamgir presented the report which said around 58% of the banks follow no guideline when it comes to fund transfer pricing. “Some 58% of the banks are found to have not been following no guidelines in fund transfer between banks while 96% of them do the job through the age-old system and only 4% use fund transfer curve through online calculator,” the report said. It also said 62% of the banks transfer pricing manually while 85% banks perform it with the help of a committee. “Only seven banks follow the GRI guidelines, some 34 banks do not follow and the rest of the banks follow the guidelines partially,” the report said. Bangladesh Bank Deputy Governor Abu Hena Mohammad Razee Hassan attended the function as the chief guest. He said: “It is a challenge for Bangladesh to retain development and ensure a sustainable environment and so the banks need to go for green financing and prepare report on sustainable banking.” “In 2015, most of the banks failed to submit their sustainable banking reports to the central bank,” Abu Hena said. BIBM Director General Toufiq Ahmed Choudhury said there was no alternative to green financing to ensure sustainable development goals. He called for fixing a definite rate on fund transfer. BIBM Supernumerary Professor Helal Ahmed Choudhury asked for improving bankers’ skills to prepare sustainable banking report. The event was also attended, among others, by BIBM Supernumerary Professor Yeasin Ali and Bangladesh Securities and Exchange Commission Commissioner Swapan Kumar Bala.