Bangladesh Bank has signed a cooperation agreement with International Finance Corporation to prepare guidelines to reduce social and environmental risks in the country’s textile sector. The agreement — environmental and social risk management for the textile sector — was signed on Tuesday at the central bank’s headquarters in the capital, according to a BB news release. Under the deal, BB and IFC will jointly carry out the preparatory work to formulate the policy guidelines so that banks and NBFIs would be able to reduce their existing investment-related risks in the textile sector. Besides, bankers and employees of the textile and readymade garment sectors would also be provided with necessary training on the guidelines and the risks management procedures. The agreement will help reduce the environmental and social risks of banks and financial institutions in investing in the textile sector, said BB deputy governor SK Sur Chowdhury at the deal signing ceremony. BB’s sustainable finance department general manager Manoj Kumar Biswas and IFC programme manager M Masrur Reaz signed the agreement on behalf of their respective organisations.
