Sustainable financing in Bangladesh witnessed a slight decline as it dropped from Tk 35,387 crore at the end of the January-March quarter of 2023 to Tk 35,196 crore at the end of the April-June quarter of 2023, according to a report by Bangladesh Bank. Non-bank financial institutions (NBFIs) also experienced a dip in sustainable finance, from Tk 1,306 crore to Tk 1,301 crore during the same period.
This decrease is attributed to a liquidity crisis in the financial market and economic challenges, leading to reduced production, new factory establishment, and capital machinery imports, affecting credit demand. However, banks’ green financing increased by 13.3% in the April-June period compared to the previous quarter, reaching Tk 3,144 crore. In contrast, green financing by NBFIs declined from Tk 839 crore to Tk 783 crore.
Sustainable finance represented 13.59% of banks’ total loan disbursements and 21.32% for NBFIs during the reporting period. Banks’ outstanding balance of sustainable finance was Tk 1.58 lakh crore, while NBFIs had Tk 8,860 crore in June. During the January-June period, banks recovered Tk 24,188 crore, and NBFIs recouped Tk 409.41 crore from their disbursed sustainable loans.
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