Green banking-a new dimension

Abstract

Climate change has become a global concern as it has direct impact on biodiversity,agriculture, forestry, dry land, water resources and human health. In a globalize economy, it is the time toconsider environmental policies because environmental impact might affect to the rate of return and reputationof business in the long-run. Among the business organizations, one of the major economic agents influencingoverall industrial activity and economic growth is the financial institution such as banking sector. Bank playsa very important role in shaping the economy. Now-a-days, Banks that support the local community andenvironment are seen as leaders. As a result, Bank continuously strives to ensure that its operations areenvironment-friendly and discourages financing projects contrary to it. This study highlights the concept,needs and significance, and products of green banking. The study forms mainly the extensive review ofrelated literature based on highly work. It is seen that there has not been much initiative in this regard by thebanks and other financial institutions in the world. Therefore, this paper suggests some necessary directionsfor promoting green banking in the world to protect the environment and builds banks performance.