Paper Title
Financial, Digital and Green Banking Aspects of Monetary Policy
Imam Abu Sayed
Apart from monetary policy’s impact on real GDP, inflation, interest rate andexchange rate, banks’ financial impact, along with digitization and the green banking approachof Bangladesh Bank (BB), are elaborated in this paper. Financial crucial issues, securitization,balance sheet duration gap and operational issues related to banks are addressed. The salientfeatures of digital currency and automation are another key aspect of central banking in relationto technological development. To maintain the ecosystem, green banking and desertermanagement aspect is also examined. Analysis regarding the mentioned issues will integrate themoney and financial market with a due concentration on digitization and green banking toformulate integrated policy from the central banking perspective. For inclusive and sustainablegrowth, the shed of modern interest rate targeting monetary replacing monetary aggregatetargeting monetary policy is also highlighted in this paper. Attaining the broader objectives ofmonetary policy by the conventional and growing Islamic bank segment is crucial in order toattain multidimensional objectives of monetary policy, which is illustrated in the differentsections of this paper. Overall, the financial sector, including the priority sector like digitizationand green financing from the central bank monetary policy perspective has huge importance forapplying due diligence. Accordingly, the fundamentals of micro and macroeconomics, projectfinancing, government deficit budget financing and the significance of monetary policy takingcare of automation and green financing for inclusive growth is the thrust of this paper in brief.
Monetary Policy, Demand for Money, Interest Rates, Money Supply and Price Level.