Financing by banks and financial institutions (FIs) in sustainable initiatives are rising significantly for investments in eco-friendly products and services.
According to the quarterly review report on sustainable finance by banks and FIs for October-December 2022 released by the Bangladesh Bank (BB) on Sunday, their contribution to green finance was Tk4,678 crore.
The amount was over 40% higher than that of July-September 2022 period, when Tk2,778 crore was credited to the green initiatives.
Similarly, in October-December 2022, the contribution of banks and FIs to sustainable finance was Tk41,104 crore, 22.42% more than that of July-September 2022 period, according to the quarterly review report.
On the other hand, of the 34 FIs, some 16 FIs had exposure to sustainable finance, while 11 FIs to green finance in the quarter.
Such increased financing by the banks and FIs raised the ratio of green and sustainable finance to the total term-loan disbursement in 2022.
In 2011, the ratio of green initiatives, such as bringing energy efficiency in factories and eco-friendly brick kilns and agricultural schemes, as percentage of the total disbursed term loan was 3.06% (Tk7,233 crore), which rose to 4.97% (Tk12,226 crore) at the end of 2022.
In terms of sustainable finance, the ratio was 8.04% (Tk82,552 crore) in 2021, which went up to 11.59% (Tk130,722 crore) in 2022.
