Bangladesh Bank rates top banks and NBFIs for sustainability in 2021

Ten banks and five non-banking financial institutions (NBFIs) have been certified on the basis of certain criteria, in the “Sustainability Rating 2021” of the Bangladesh Bank.

This is the second time Bangladesh Bank has issued this rating.

Four banks that were rated last year were removed from this year’s rating, as were three NBFIs.

Banks in the top 10 of the 2021 Sustainable Rating were Bank Asia, Brac Bank, Dutch-Bangla Bank, Eastern Bank, Exim Bank, Islami Bank Bangladesh, NRB Bank, Pubali Bank, Southeast Bank and The City Bank.

On the other hand, the top five NBFIs included Agrani SME Financing, Bangladesh Finance and Investment, Bangladesh Infrastructure Finance Fund Limited (BIFFL), IDLC Finance and IPDC Finance.

According to a statement from the Bangladeshi bank on Wednesday, the four indicators on which the rating was based were Sustainable Finance Indicator, Green Refinancing, Social Responsibility (CSR) Program and Core Banking Sustainability.

Selim RF Hussain, Managing Director and CEO of Brac Bank, said that since its inception, their bank has always been committed to the value-based financing model where sustainability and profitability are combined to achieve socio-economic impact. most important.

“During our 20-year journey, we have learned, embraced and then embraced the 3 core principles of sustainability: People, Planet and Prosperity as our company mission statement. Today, Brac Bank breaks the barrier of traditional funding and channeling impact-based financing to achieve our country’s 17 UN SDGs,” he also said.

“As one of the founding members of the Global Alliance for Banking on Values, we use 360-degree banking to deliver sustainable economic, social and environmental development. Our corporate social initiatives also have a strong focus on programs that have a lasting impact on the environment, society and its people,” Hussain added.

“Based on the principle of sustainability, Brac Bank strives to use Bangladesh Bank’s guiding principles and set sustainability priorities in our future strategy. We are honored that Bangladesh Bank has named us one of the top ten sustainable banks for 2021,” he added. .

Chief Executive and Spokesperson of Bangladesh Bank, Md Serajul Islam, said the list of top 10 banks in the sustainability rating has been released to motivate banks to uphold good governance, integrity and social responsibility .

Asked about the indicators and views of certain central bank departments when compiling the list, he told Dhaka Tribune: “Sustainability ratings are based on a number of indicators including spending in terms of CSR, green finance, basic banking activities and the default rate”.

The rating was prepared in collaboration with various departments of Bangladesh Bank including Banking Regulation and Policy Department, Offsite Supervision Department, Financial Institutions Inspection Department, he said. Explain.

Hopefully, this rating will inspire the establishment of integrity and good governance in the operations of banks and financial institutions. In addition, CSR will play a more pioneering role in green spending and finance, Islam added.

However, in 2020, a circular was issued by Sustainable Finance Department of Bangladesh Bank for all listed banks and NBFIs in the country.

In this circular, they referred to sustainability ratings based on the Sustainable Finance Policy Guidelines and the Sustainable Development Goals (SDGs).

The names of the top 10 banks and five NBFIs in the Sustainable Rating-2020 were first announced in August last year, in light of the circular.

Banks on the 2020 list included Al-Arafah Islami Bank, Bank Asia, Brac Bank, Dutch-Bangla Bank Limited, Exim Bank, Islami Bank Bangladesh, Mutual Trust Bank, Prime Bank, The City Bank and United Commercial Bank.

The NBFIs rated in 2020 were Hajj Finance Company, IDLC Finance, IPDC Finance, Saudi Bangladesh Industrial and Agricultural Investment Company (Sabinco) and United Finance.