PREFACE

Preparation of term paper report is one of the important assignments of 4 th year BBA (Hons.).
Mainly our study is limited in theories. This term paper program has been designed for the
students of 4th year to acquire some practical and special knowledge.
Because it is an important thing that students have some piratical knowledge about the
current business world. In developed countries business schools give more preference to
practical knowledge. Keeping this view in mind our curriculum includes preparation of term
paper in which I had to make this report. My report actually concern about environmentally
friendly banking (Green banking).
During my preparation of report I tried to acquire the information related to concept and current
practices of Green Banking in Bangladesh. The paper also includes experts view, evolution,
policy guidelines, roles, different products and services as well as related problems of green
banking. This paper may work as guidance for different public and private commercial banks
for adopting green banking practices in their day to day activities.
I owe a profound sense of gratitude to my honorable teacher, Mohammed Jamal Uddin,
Associate Professor, Department of Finance and Banking, University of Chittagong, whose
continuous guidance enable me to complete this report successfully.

ACKNOWLEDGEMENT
It was very kind desire of the Almighty that I, Md. Maidul Hayder, have completed the
assigned task within the specified time period. For the fear of soundings like a vote of
thanks speech, I could not possibly thank all of those marvelous people who have
contributed something of themselves directly in preparing this report. First of all, my hearty
thanks go to Mr. Mohammed Jamal Uddin, Associate Professor, Department of Finance and
Banking, University of Chittagong, for his perseverance and direct supervision. Without his
guidelines and valuable advices and suggestions from time to time, I would be failed to complete
the whole thing in a right manner.
I like to express my tributes and gratitude to all of my friends who directly or indirectly give
their in this regard. I am also thankful to our classmates, employees of department and seminar
librarian who helped me in various ways, without their cooperation my report cant be prepared
in time.

EXECUTIVE SUMMARY
Sustainable development can best be achieved by allowing markets to work within an
appropriate framework of cost efficient regulations and economic instruments. One of the major
economic agents influencing overall industrial activity and economic growth is the financial
institutions such as banking sector. In a globalised economy, the industries and firms are
vulnerable to stringent environmental policies, severe law suits or consumer boycotts. Since
banking sector is one of the major stake holders in the Industrial sector, it can find itself faced
with credit risk and liability risks. Further, environmental impact might affect the quality of
assets and also rate of return of banks in the long-run. Thus the banks should go green and play a
pro-active role to take environmental and ecological aspects as part of their lending principle,
which would force industries to go for mandated investment for environmental management,use
of