Green Banking: A Mini-Review

Abstract

Environmental degradation and natural resource shortages are increasingly becoming a threat to human life. Based on the recent research conducted, the prevailing condition of environmental pollution can effectively be addressed through financial institutions and banks. The primary element is starting and managing businesses to take into account land, labor, and capital act. Businesses cannot run without adequate capital. Different types of industrial and production organizations are the key source of finance to most banks and financial institutions. Therefore, there is a great need to come up with a banking system that will aid in reducing pollution on the environment. In an attempt to address the issues of environmental degradation, most countries have adopted the Green Banking practices to provide an alternative for other banking systems. The inability to take into consideration the role of various stakeholders during the implementation stages has been considered a major challenge facing the adoption of this type of banking system. The research paper conducts a comprehensive study on Green Banking and its application in ensuring environmental sustainability. There have been concerns on how Green Banking can contribute to environmental sustainability. The aim of the study is to determine the role of green banking practices in fostering environmental sustainability development by obtaining and testing the data obtained from Dutch-Bangla Bank Limited. Secondary data was employed by the study to investigate the topic of the study. The descriptive statistical tools like simple average, tables, and percentage have been employed by the study to present the data collected from the secondary sources. The result obtained showed that Green Banking practices such as online banking, paperless banking system, and green lending policy contribute positively towards environmental sustainability.