Green Banking is any form of banking from which the
country and nation gets environmental benefits.
It considers all the social and environmental factors; it is
also called as ethical bank. Ethical banks have started with
the aim of protecting the environment.
They are controlled by the same authorities but with an
additional agenda toward taking care of the Earth's
environment/habitats/resources.
Features of Green Banking
Banks can help environment through automation and online
banking.
Green banking focuses on social safety and security through
changing the negative impacts of the society.
In financing, it always gives priority to investments / loans
which consider risk factors regarding environmental conditions.
It always cares for sustainable and green growth in
industrialisation and for social purposes.
It creates a congenial atmosphere inside and outside the bank.
Features of Green Banking
It considers the clients as its family members, and as such,
guide and supervise the projects to reduce pollution and
thus implement scientific methods in the real sense by implementing environmental due diligence (EDD) checklist.
It reduces cost and energy, thus saving money and
increasing GDP of a country.
It changes the mental faculties of the officials and
customers, in line with green sensibilities.
It helps institutions, men and the nation in general live with
dignity.
Ideal Benefit of Green Banking
Basically Ethical (Green) banking avoids as much paper
work as possible and rely on online/electronic transactions
for processing so that you get green credit cards and green mortgages. Less paperwork means less cutting of trees.
Creating awareness to business people about
environmental and social responsibility enabling them to do
a environmental friendly business practice.
Green (Ethical) banks adopt and implement environmental
standards for lending, which is really a proactive idea that
would enable eco-friendly business practices which would benefit our future generations.
Ideal Benefit of Green Banking
When you are awarded with a loan, the interest of that loan
is comparatively less with normal banks because ethical
banks give more importance to environmental friendly factors - ecological gains.
Natural resources conservation is also one of the
underlying principles in a green bank while assessing
capital/operating loans to extracting/industrial business sector.
Conclusion The success/failure rate of green banking has been making
progress though its profit margins are far below than other commercial banks.
Its success would be greater if the world governments
started to revise their economic paradigms from being
'monetary economics' to 'ecological economics' and begin to transform their accounting principles from purely being financial into ecological/operational energy accounting patterns.