Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has set targets for loan disbursement of direct green products for both banks and non-banking financial institutions (NBFIs) for 2015.
The banks, scheduled before 2013, have to disburse 5.0 per cent of their total funded loans, while the banks, scheduled after 2013, will have to disburse 3.0 per cent of their total funded loans, according to the targets.
Besides, the NBFIs will have to fix direct green finance target at 4.0 per cent of their total funded loans to facilitate green financing in Bangladesh.
However, the target is fixed at 5.0 per cent for all banks and NBFIs from 2016, according to a circular, issued by the Bangladesh Bank (BB) on Thursday.
The central bank also said the green financing performance will be considered as an integral part of management while assessing CAMELS, a rating adopted by the central bank for the banks and the NBFIs.
Actions will be taken in line with the existing rules and regulations against non-compliant banks and the NBFIs, a BB official said, adding that the central bank has already identified 47 green products under ten categories.
BBN/SSR/AD-05Sept14-2:24 pm (BST)