Green banking is like a normal bank, which considers all the social and environmental/ecological factors with an aim to protect the environment and conserve natural resources. It is also called as an ethical bank or a sustainable bank. They are controlled by the same authorities but with an additional agenda toward taking care of the Earth's environment/habitats/resources.
Ideal Benefits of Green Banking:
* Basically Ethical (Green) banking avoids as much paper work as
possible and rely on online/electronic transactions for processing so that you
get green credit cards and green mortgages. Less paperwork means less cutting
of trees.
* Creating awareness to business people about environmental and social
responsibility enabling them to do a environmental friendly business practice.
* Green (Ethical) banks adopt and implement environmental standards for
lending, which is really a proactive idea that would enable eco-friendly
business practices which would benefit our future generations.
* When you are awarded with a loan, the interest of that loan is
comparatively less with normal banks because ethical banks give more importance
to environmental friendly factors - ecological gains. Natural resources
conservation is also one of the underlying principles in a green bank while
assessing capital/operating loans to extracting/industrial business sector.
Green Banking as a concept is a proactive and smart way of thinking with a
vision for future sustainability of our only Spaceship Earth - as design
science explorer Richard Buckminster Fuller called our Earth.
Green
banking requires a paradigmatic change in thinking about economics, business
and finance. Its success would be greater if the world governments started to
revise their economic paradigms from being 'monetary economics' to 'ecological
economics' and begin to transform their accounting principles from purely being
financial into ecological/operational energy accounting patterns