BB Governor for reshaping financial system

Bangladesh Bank (BB) Governor Dr. Atiur Rahman Friday highlighted BB's engagement in reshaping financial system to support sustainable development  at the Second Advisory Council Meeting of UNEP's Inquiry on 'Design of a Sustainable Financial System' held in New York.
Experiences of Brazil, China, South Africa and the UK were also presented in the session,according to a statement issued by BB.
Dr. Rahman, who is also a member of the Council in his presentation pointed out that Bangladesh Bank is one of the very few early recognisers on that the conventional short term business cycle focused monetary and financial policy approaches are failing to address the longer term needs of inclusivity and environmental sustainability in growth pursuits.
He added that mandated by its charter to support output and employment growth besides protecting monetary and financial stability, BB stepped into initiatives of imparting a deliberate directional bias in financing flows away from speculative and sustainability harming uses towards inclusive financing of 'green' output initiatives. This approach has succeeded in drawing all market intermediaries into proactive engagement in the various initiatives, often with their own innovations of cost efficient service delivery modes.
He further added that with the set priorities for the underserved areas of inclusive, sustainable financing on three broad fronts - agricultural financing, SME financing and green financing of renewable energy, waste treatment, low carbon output options - BB initiated various low cost refinancing lines along with differentiated equity margin requirements, differential loan pricing and risk grading, government funded interest subsidy support, better CAMELS rating for environmentally benign sustainable financing activities. BB Governor concluded his presentation by highlighting the impact on sustainability in terms of six plus percent annual GDP growth for more than a decade accompanied by single digit CPI inflation, lower single digit budget deficit, very viable and stable external sector supported by robust export earnings and remittances inflows. He also mentioned, in this regard, that two impact studies - one by Zurich-based think tank Council on Economic Policies (CEP) and the other by ILO - are in the final stage with indications of impressive sustainable outcomes in terms of socially responsible financing, employment generation and economic growth. His presentation created a lot of interests and enthusiasms among the participants and other members of the Advisory Council of UNEP's inquiry on design of a sustainable financial system who wanted to learn more about BB's experience of inclusive and sustainable financing initiatives.