Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)

Green finance (GF) has been gaining significant attention in recent literature, owing to the rise global actions against climate change. It is conceptually ambiguous, with no conclusive agreement among researchers on its meaning. Therefore, main purpose of study identify bankers’ perception various dimensions GF, and major challenges affecting implementation Bangladesh. Besides, this also reveals status GF Bangladesh’s banks non-bank financial institutions from 2014 2019. In order define key aspects through data obtained 296 banking staffs private commercial (PCBs) Bangladesh, confirmatory factor analysis (CFA) was used. The used descriptive statistics hindering development findings show that, comparison other institutions, PCBs are largest contributors direct accounting for 74.2% total outcomes “economic dimension” as most dimension level perceptions GF. Moreover, bankers perceived “social environmental dimensions” being second third crucial factors influencing followed by sources green financing. empirical indicate that deemed awareness, beliefs understanding financing be satisfactory addition, shows high transaction costs, heavy default culture, operational self-insufficiency, improper appraisal loan applications, absence adequate accountability transparency barriers policy implications further discussed.