BB delineates CSR fund use
Bangladesh Bank yesterday issued guidelines on how banks and non-bank financial institutions should use corporate social responsibility (CSR) funds, with focus on education, health and climate issues.
In addition, the regulations gave priority to disaster management, building sustainable infrastructures in remote areas, sport and culture, and women empowerment.
As per the guideline, lenders have to spend at least 30 per cent of their annual CSR funds in the educational sector.
The central bank specified some segments of the education sector, including scholarships or stipends for children from low-income families and the physically challenged to prevent students from dropping out.
The BB also instructed lenders to spend a minimum 30 per cent of their CSR funds for the health sector, asking them to extend assistance to the underprivileged population.
Lenders have to give emphasis on catering funds for financially insolvent individuals having to bear expensive treatments for cancer, kidney, liver and heart diseases and so on.
The BB also instructed lenders to spend the fund to combat pandemics and epidemics like Covid-19, SARS, AIDS, dengue, malaria and other illnesses causing fatalities.
On top of that, at least 20 per cent of the fund will have to be used to mitigate the crisis stemming from the ongoing climate change.
The BB barred lenders to disburse the fund in some specific sectors, such as those which recruit children as workers.
Sponsorship in sports and cultural activities at the international level, branding business developments of a company and financing militancy and terrorism should not be considered for CSR funds from banks.
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