Green Banking

Green banking refers to the initiative of banks to encourage eco-friendly investment, prioritizing lending to industries that have already gone green or are trying to grow green and as a result help restore the natural environment. This initiative of Green Banking is mutually beneficial in banking, industry and economy. Nevertheless, green banking will ensure that the asset quality of banks will improve in the future.

Green banking is an environmentally friendly financing. The concern of banks about the welfare of the environment when financing for business is considered as green banking. To get a sustainable positive impact from business, green banking is essential. Businesses can drive the economy and affect the sustainability of a sustainable business economy. Thus, the establishment of successful green business is crucial. The role of central banks in the introduction and implementation of green banking is essential.

Green banking is an umbrella term that refers to practices and guidelines that make banks economically, environmentally and socially sustainable. To work towards making the banking process and IT and physical infrastructure as efficient and effective as possible, with zero or minimal impact on the environment. Green banking optimizes costs, reduces risk, enhances the bank's reputation, and contributes to a more general way of environmental sustainability. So it serves both the commercial purpose of the bank as well as its social responsibility.