Bangladesh's suburban regions are rapidly evolving into urban centres, bringing both development opportunities and rising environmental and social challenges. To ensure that urbanisation remains economically and environmentally sustainable, the private sector-especially banks-must step forward alongside the government.
Banks play a vital role in achieving Sustainable Development Goal 11 (Sustainable Cities and Communities) by financing eco-friendly infrastructure, affordable housing, clean transportation, and resilient public services.
Through green loans, project financing, and public-private partnerships, banks enable cities to grow smarter, safer, and more equitably.
The Bangladesh Bank's 'Sustainable Finance Policy' (2020) requires financial institutions to assess environmental risks and promote green financing. In 2023, banks invested over Tk 12.64 billion in sustainable projects-ranging from renewable energy to rainwater harvesting and LEED-certified buildings.
Moreover, banks can influence sustainable practices at the household level by linking home loans and microloans to environmental incentives. For instance, offering interest subsidies for homes with solar panels or water-saving systems can encourage individuals to adopt eco-friendly lifestyles.
Banks like Dutch-Bangla Bank and Prime Bank are already setting examples through initiatives like "Green Office" programmes and investments under the Green Transformation Fund in agriculture and textiles. Meanwhile, digital banking, accelerated during the COVID-19 period, is also promoting environmental sustainability by reducing paper, energy, and time use.
The Banking Companies (Amendment) Act 2020 and Bangladesh Bank's Sustainable Finance Guidelines are reshaping the financial sector's role from profit-making to socially and environmentally responsible investing.
Banks must now act not only as financiers but also as proactive partners in sustainable urban development. With visionary policies, innovative credit products, and public awareness efforts, the banking sector can become a key force in building greener, more liveable cities for future generations.
Md. Hassan
Department of Development Studies
Islamic University, Kushtia