Banks and the non-bank finance institutions will have to disburse 20% of green finance to women entrepreneurs. Additionally, 25% of the loan is to be disbursed to the CMSME sector and 15% of the loan in the CMSME sector is to be disbursed to women entrepreneurs.
Bangladesh Bank’s Department of Sustainable Finance issued this instruction to the head of banks and finance institutions on Monday (17 March). They are required to make 5% of their overall lending green finance. The direction of the central bank mentioned that the role of the CMSME sector and women entrepreneurs is indisputable in attaining sustainable industrialization and inclusive development.
In order to fulfill the government’s Sustainable Development Goals (SDGs), efforts towards women’s empowerment in the economy, narrowing the gap of disparity between males and females, and enhancing the role of women have been made. But the necessary level of finance in the CMSME and women entrepreneurship sectors has not been met yet. A higher level of provision of finance to these sectors is a must in the context of economic development, and banks and the financial sector assume the responsibility to fulfill this.
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It has been settled that banks and the finance institutions will have to allot 25% of their green finance to the CMSME sector and 20% to women entrepreneurs. Additionally, 15% of the loans to the CMSME will have to be given to women entrepreneurs.
