Question

Is social banking a fad, a form of greenwashing, or an authentic strategy for environmental finance? Please use an example to support your assertions.

Answer 1

The term 'social banking' has been around since the 1950s, and generally alluded to feasible speculation. Presently, notwithstanding, the term is bound to mean banking through web based life, distributed loaning or the advancement of online money related networks. These sorts of loaning are viewed as a democratization of fund, and are regularly displayed as answers for issues that the conventional financial framework can't or won't address. Worldwide interests in manageable resources added up to 21.4 trillion US dollars in 2014.

The significant advantages of social banking are:

• Provide loan to lower segment of society
• Credit facilities to the small farmers
• Preference given to industry producing essential goods
• gather fund for welfare functions
• Green bond issues for financing need

The criteria of social banking will directly linkage with sustainable environment need, the best example can be proved by issue of lots of green bonds in last few decades to fulfill financing need.