2024-07-10 20:57:34
The central bank has given good status to 10 private sector banks and 3 financial institutions in sustainable rating. The Sustainable Rating is published for the fourth time based on 2023 data. Earlier in 2022, 7 banks and 4 financial institutions received good ratings.
According to Bangladesh Bank’s updated report on Wednesday (July 10), the top ten banks in the sustainable rating of 2023 are BRAC Bank, City Bank, Eastern Bank, Exim Bank, Jamuna Bank, Mutual Trust Bank, Prime Bank, Trust Bank, United Commercial. Bank and Uttara Bank. Among them, BRAC Bank, Yamuna Bank, Prime Bank, City Bank, Trust Bank and United Commercial Bank were also ranked in 2022.
The three financial institutions with good ratings are IDLC Finance, IPDC Finance and United Finance. Among them, IDLC Finance Limited was also ranked in 2022. Four financial institutions were rated that year.
Basically, quality is checked based on five indicators. These are—Sustainable Finance Index, Social Responsibility Activities, Environmentally Friendly Project Financing, Sustainable Core Banking Index and Scope of Banking Services.
In order to achieve sustainable development, banks and financial institutions have been carrying out various activities including loans, social responsibility activities in environment-friendly projects for several years. Many banks are using solar power. Reduces the use of paper to reduce tree cutting. Besides, various initiatives have been taken to reduce electricity consumption in offices.
According to Bangladesh Bank officials, credit quality of banks, capital situation, agent banking activities have also been taken into consideration in the sustainable core banking index. Due to this, many new banks are being added, many are left out.
However, commercial bank officials say, this quality check does not reveal the entire financial picture of a bank. As a result, no bank or financial institution is the best, it cannot be said through that.
Bangladesh Bank’s Sustainable Finance Department has issued a circular for all scheduled banks and financial institutions in the country in 2020. The Circular mentioned the issue of formulation of Sustainability Rating based on Sustainable Finance Policy guidelines and Sustainable Development Goals. In light of the guidelines of that circular, the names of sustainable rating, top 10 banks and 5 financial institutions of 2020 were announced for the first time in August 2021. Similarly, the rating was published in 2021 and 2022.