Green

Banking
By: Joson, Ryan Paolo G.

What is Green/Ethical Banking?

Green Banking is any form of banking from which the

country and nation gets environmental benefits.

It considers all the social and environmental factors; it is

also called as ethical bank. Ethical banks have started with

the aim of protecting the environment.

They are controlled by the same authorities but with an

additional agenda toward taking care of the Earth's

environment/habitats/resources.

Features of Green Banking

Banks can help environment through automation and online

banking.

Green banking focuses on social safety and security through

changing the negative impacts of the society.

In financing, it always gives priority to investments / loans

which consider risk factors regarding environmental conditions.

It always cares for sustainable and green growth in

industrialisation and for social purposes.

It creates a congenial atmosphere inside and outside the bank.

Features of Green Banking

It considers the clients as its family members, and as such,

guide and supervise the projects to reduce pollution and

thus implement scientific methods in the real sense by
implementing environmental due diligence (EDD) checklist.

It reduces cost and energy, thus saving money and

increasing GDP of a country.

It changes the mental faculties of the officials and

customers, in line with green sensibilities.

It helps institutions, men and the nation in general live with

dignity.

Ideal Benefit of Green Banking

Basically Ethical (Green) banking avoids as much paper

work as possible and rely on online/electronic transactions

for processing so that you get green credit cards and green
mortgages. Less paperwork means less cutting of trees.

Creating awareness to business people about

environmental and social responsibility enabling them to do

a environmental friendly business practice.

Green (Ethical) banks adopt and implement environmental

standards for lending, which is really a proactive idea that

would enable eco-friendly business practices which would
benefit our future generations.

Ideal Benefit of Green Banking

When you are awarded with a loan, the interest of that loan

is comparatively less with normal banks because ethical

banks give more importance to environmental friendly
factors - ecological gains.

Natural resources conservation is also one of the

underlying principles in a green bank while assessing

capital/operating loans to extracting/industrial business
sector.

Conclusion
The success/failure rate of green banking has been making

progress though its profit margins are far below than other
commercial banks.

Its success would be greater if the world governments

started to revise their economic paradigms from being

'monetary economics' to 'ecological economics' and begin
to transform their accounting principles from purely being
financial into ecological/operational energy accounting
patterns.