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This study aims to investigate the contributions of banks and non-bank financial institutions through green financing in the overall economy of Bangladesh. This paper also tries to bring out the challenges and prospects of banks and financial institutions (FIs) in green financing. The study has been conducted based on secondary data consisting of previous literature reviews, published reports of different banks and financial institutions including Bangladesh Bank's annual reports and published documents of international organisations relating to environmental sustainability. This study shows that though the trends of green financing are growing, comparing to total loan disbursed, it is still below the standard set by Bangladesh Bank. This study provides a valuable insight to the banks as well as policymakers to attain a greater legitimacy and a policy review based on guidelines and recommendations on green financing to urge rapid progress in greening the environment as well as the overall economy for sustainability.
Rashid et al. (Mon,) studied this question.