Regulatory Alerts2020-12-31
Added
Sustainable Finance Policy for Banks and Financial Institutions
Bangladesh Bank establishes a comprehensive policy framework requiring banks and financial institutions to integrate environmental, social, and governance criteria into their financing portfolios. The document defines a Sustainable Finance Taxonomy and a Green Taxonomy, outlining specific identification processes for green products, sustainable agriculture, CMSME, and socially responsible finance. It mandates the fixation of targets for green and sustainable finance, introduces a sustainability rating system, and specifies exclusion lists for ineligible projects. Additionally, it requires separate budget allocations for sustainable and green finance based on the previous year's net outstanding basis.