The aim of this study is to discuss how the stance of a financial institution in associating a green financing can be developed within an ambiance where monetary organizations are facing the challenges of capital requirements by (BA)-III. Basel regulations would not segregate green loans from other financial facilities regarding risk-weightings. The investigators contend that (BA)-III essentials are not supporting the lending facilities of viable financial activities. Zarai Taraqiati Bank Limited-(ZTBL) that plays a vital role in agricultural development sector of Pakistan is examined. The financial institution’s capability to increase lending in lieu of green-projects later by the implementation of (BA)-III is engrossed. Investigators explore that whether risk-weightings of green financing stood level down to 49.70 percent from 100, (ZTBL)’s Capital Adequacy Ratio-(CAR) may be 4.5 percent points higher. Ongoing study assumes the risk-weightage pertaining green loans need to moderate for ordering to boost up viable progress.

Keywords: Sustainable Development Financing-(SDF), Green Banking Loans-(GBL), Financial Institutions-(FI), Basel Accord-(BA), Environment Social and Governance-(ESG), Capital Adequacy Ratio-(CAR), Minimum Capital Requirement-(MCR).