Bangladesh Bank (BB) Governor Atiur Rahman recommended reshaping financial system to support sustainable development, especially in the countries where most of the people urgently require strong intuitional financial support, reports BSS. The governor put forward the recommendation while presetting a paper on “Design of a Sustainable Financial System” at the second advisory council meeting of United Nations Environment Programme (UNEP) in New York, USA on Friday.
Atiur, who is also a member of the council, highlighted BB’s engagement in reshaping financial system to support sustainable development in a learning session where experiences of Brazil, China, South Africa and the United Kingdom were also shared.
The governor said that BB is one of the very few early recognisers on that the conventional short term business cycle focused monetary and financial policy approaches are failing to address the longer term needs of inclusiveness and environmental sustainability in growth pursuits.
He added that mandated by its charter to support output and employment growth besides protecting monetary and financial stability, BB stepped into initiatives of imparting a deliberate directional bias in financing flows away from speculative and sustainability harming uses towards inclusive financing of ‘green’ output initiatives. This approach has succeeded in drawing all market intermediaries into proactive engagement in the various initiatives, often with their own innovations of cost efficient service delivery modes.