Green Banking Practices in Bangladesh: A Case Study on Islami Bank Bangladesh PLC.

Abstract

Islami Bank Bangladesh PLC has become a renowned and popular bank in Bangladesh over its 43-year journey, primarily because of its superior services. As a market leader in the private banking sector, the bank has introduced several significant schemes in the country, among which Green Banking is a notable initiative. Although green banking is a relatively new concept in Bangladesh, it is rapidly gaining global acceptance as a standard for ensuring environmentally sustainable and socially responsible business practices. This report highlights the major green banking initiatives undertaken by Islami Bank Bangladesh PLC and examines how these practices enhance the bank’s overall effectiveness. The primary objective of the study is to analyze the bank’s green banking activities aimed at contributing to the economic, social, and environmental development of Bangladesh and its citizens. The study incorporates both primary and secondary data. Primary data were collected through oral and informal communication, personal observations, and qualitative feedback. Secondary data were obtained mainly from the bank’s annual reports, relevant articles, websites, Bangladesh Bank publications, newspapers, journals, and magazines. Findings of the study indicate that Islami Bank Bangladesh PLC has integrated green banking into its core business strategy to promote shared prosperity within the community. The bank is highly conscious of its internal responsibilities before extending its efforts to external stakeholders and communities. As the largest private commercial bank in the country with a vast number of stakeholders, Islami Bank possesses considerable potential to promote environmental awareness. It is effectively utilizing this potential to educate the public about environmentally friendly practices essential for sustaining the planet. However, in a developing country like Bangladesh, it is unrealistic to abandon all economic activities solely due to environmental concerns. The adverse effects on employment, income, and poverty must also be considered. Therefore, it is crucial to identify specific sectors or industries that should continue to receive financing despite their environmental impact. Long term strategies must be developed for these industries to address environmental challenges effectively, and all related policies must remain consistent.