Green banking frameworks in Asia with an in-depth focus on Bangladesh and China

Abstract

Green banking frameworks encourage banks to manage their in-house operations and lend and invest in an environmentally sustainable manner. There are at present six nations in Asia that have a green banking framework – Bangladesh, Cambodia, China, Indonesia, Mongolia and Vietnam. Each of the six countries have distinctive green banking policies and frameworks suited to their own national agendas. This article aims to provide a summary of the main green banking frameworks issued by each country's respective regulatory authority or banking association and possible reasons why these six countries have established such a framework. It then focuses specifically on the framework and banking policies practiced in Bangladesh and China, given their experience and strong establishments. The effects of introducing green banking frameworks and policies in Bangladesh and China are also accessed. The article then concludes with recommendations on what more can be done to enhance green banking in Bangladesh and China.