Dhaka, Nov. 8 -- Bangladesh Bank (BB) has issued the 'Guideline on Climate Risk Management for Banks and Finance Companies', mandating the financial sector to address its high exposure to the impacts of global warming. To this end, the central bank on Thursday issued a circular.

In the guideline, the central bank has highlighted that Bangladesh is recognized globally as one of the most climate-vulnerable countries, making its financial sector highly susceptible to both direct and indirect effects of climate change.

The new regulation aims to ensure the systematic identification, assessment, management, and disclosure of climate-related risks and opportunities across banks and finance companies.

The guideline addresses two primary categ...