Green banking also is known as a social, alternative, civic or sustainable banking is a bank concerned with the social and environmental impact of its investment and loans. These banks are part of a larger societal movement toward more social and environmental responsibility in the financial sector. It aims to make banking processes and the use of IT and physical infrastructure as resourceful and efficient as potential, with zero or least impact on the environment. This movement includes ethical investments, socially responsible investment, and corporate social responsibility and is also related to such movements as the fair trade movement, ethical consumerism, boycotting etc.
Ethical banking is a juvenile sector within this movement. The sole principle of Green banking is to speed up fresh energy market growth while making energy cheaper and cleaner for consumers, driving job creation, and preserving taxpayer money. Other areas, such as fair trade, have comprehensive codes and regulations to which all industries that wish to be certified as fair trade must adhere. Green Banks use a range of techniques and approaches to connect market actors and capital providers, bridging market gaps that allow capital to flow at scale. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.