Designing a Sustainable Financial System in Bangladesh: Summary Briefing

Innovations in policies, regulations and norms to shape a greener and more inclusive financial system are emerging in many places, but particularly in developing and emerging economies. Bangladesh has been a leader in this regard, as part of a sustained drive to ingrain a socially responsible institutional ethos in the financial sector. In particular it has developed a suite of green banking regulations and policies including concessional green refinancing, credit quotas for green finance and guidance and requirements on environmental due diligence. While there has not been an assessment of the impact of these policies, regular monitoring provides an insight into the scale of associated financial flows: - 1 billion Taka (US$13 million) of green refinancing was disbursed during FY10-FY14