Regulatory Alerts2022-06-26
Added
Guidelines on Environmental & Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh
The guidelines require banks and financial institutions to integrate environmental and social risk management into credit operations by implementing an Environmental & Social Management System and conducting Environmental & Social Due Diligence. Applicability is determined by sector and loan amount, mandating an ESDD checklist for agriculture loans over BDT 2.5 million, small enterprise loans over BDT 3.00 million, and medium enterprise loans over BDT 5.00 million, while infrastructure projects require a third-party Environmental and Social Impact Assessment. All loan proposals must first be screened against an exclusion list, with specific high-risk sectors such as RMG dyeing units and brick kilns requiring ESDD compliance regardless of the financing amount.