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Revisiting the Current Status of Green Finance and Sustainable Finance Disbursement: A Policy Insights

Author

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  • Mohammad Abul Kalam Azad

    (Department of Business Administration, Northern University Bangladesh, Dhaka 1230, Bangladesh
    Faculty of Applied and Human Sciences, Universiti Malaysia Perlis, Kangar 01000, Perlis, Malaysia)

  • Md. Aminul Islam

    (Faculty of Applied and Human Sciences, Universiti Malaysia Perlis, Kangar 01000, Perlis, Malaysia)

  • Farid Ahammad Sobhani

    (School of Business and Economics, United International University, Dhaka 1212, Bangladesh)

  • Md. Sharif Hassan

    (Faculty of Applied and Human Sciences, Universiti Malaysia Perlis, Kangar 01000, Perlis, Malaysia
    Department of Business Administration, University of Asia Pacific, Dhaka 1205, Bangladesh)

  • Mohammad Masukujjaman

    (Department of Business Administration, Northern University Bangladesh, Dhaka 1230, Bangladesh)

Abstract

The paradigm of green finance is currently in the developmental stage in Bangladesh; however, it has drawn enormous interest in the global financial sector. Recently, researchers, academics, policymakers, and both the supply-side and demand-side of these funds are more serious in Green Finance and Sustainable Finance than ever before. In creating a greener economy, market players need to focus on sustainable development. All banks and NBFIs have to disburse the funded loan greater than or equal to 5% in green finance and 20% in sustainable finance according to BB policy guidelines. This paper examines the recent target accomplishment scenario of green finance and sustainable finance through banks and NBFIs in Bangladesh for the year of 2021 (four quarters). This study also observes the highest and lowest contributors in both schemes and is descriptive in nature. Data has been collected from secondary sources. According to the findings of this study, Bangladesh’s central bank has made significant accomplishments in the effort to green the country’s financial system by implementing several green policies and regulatory measures. This study also indicates the total target achievements of banks and NBFIs were 3.16% of 5% in the green finance of total loan disbursement and 9.32% of 20% in sustainable finance, which is still far behind the SDGs’ goal that must be achieved by 2030. The intention of this research is to encourage the supply and demand sides of the fund and to capitalize more on future research directions. Independent experts in this field are needed to confirm the findings of any further research.

Suggested Citation

  • Mohammad Abul Kalam Azad & Md. Aminul Islam & Farid Ahammad Sobhani & Md. Sharif Hassan & Mohammad Masukujjaman, 2022. "Revisiting the Current Status of Green Finance and Sustainable Finance Disbursement: A Policy Insights," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8911-:d:867548
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    References listed on IDEAS

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