IFC, Bangladesh Bank back sustainable energy financing
Wednesday, 4 November 2009
IFC, a member of the World Bank Group, has formed a partnership with the Bangladesh Bank and local financial institutions to introduce systemic change in the way banks do business to increase investments in sustainable energy finance.
During her official visit to the country, IFC Vice President for Business Advisory Services Rachel Kyte met with Bangladesh Bank Governor and leaders of 40 financial institutions to discuss ways to make sustainable energy finance available to small and medium enterprises.
The partnership is expected to help banks increase their sustainable energy finance portfolios and decrease their non-performing loans by making them more aware of environmental risks, said an IFC press release.
Kyte also encouraged banks to apply for the Financial Times Sustainable Banking Awards to promote this innovative way of doing business. These awards were introduced in 2005 and now are viewed as leading global awards in the field of sustainable banking.
They recognise financial institutions that have shown leadership and innovation in integrating social, environmental, and corporate governance practices into their operations. In 2008, three Bangladeshi institutions applied for the award-ASA, BRAC Bank and Integrated Development Foundation.
"We welcome many more entries this year," Kyte said. "Bangladesh has the potential to become a global leader in sustainable finance."
Bangladesh Bank created a revolving fund to finance effluent treatment plants and biogas and solar projects. Financial institutions can use this fund to offer small and medium enterprises financing.
During her official visit to the country, IFC Vice President for Business Advisory Services Rachel Kyte met with Bangladesh Bank Governor and leaders of 40 financial institutions to discuss ways to make sustainable energy finance available to small and medium enterprises.
The partnership is expected to help banks increase their sustainable energy finance portfolios and decrease their non-performing loans by making them more aware of environmental risks, said an IFC press release.
Kyte also encouraged banks to apply for the Financial Times Sustainable Banking Awards to promote this innovative way of doing business. These awards were introduced in 2005 and now are viewed as leading global awards in the field of sustainable banking.
They recognise financial institutions that have shown leadership and innovation in integrating social, environmental, and corporate governance practices into their operations. In 2008, three Bangladeshi institutions applied for the award-ASA, BRAC Bank and Integrated Development Foundation.
"We welcome many more entries this year," Kyte said. "Bangladesh has the potential to become a global leader in sustainable finance."
Bangladesh Bank created a revolving fund to finance effluent treatment plants and biogas and solar projects. Financial institutions can use this fund to offer small and medium enterprises financing.