Home / Front Page/ SL hailed for initiating banking reforms to fight climate change

SL hailed for initiating banking reforms to fight climate change


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 17 October 2019 02:44


  • New report says sustainable banking accelerates expansion of sustainable finance in emerging markets 

 

Sri Lanka is among 38 emerging market economies having initiated key banking reforms to drive development and fight climate change, according to the second Global Progress Report of the IFC-facilitated Sustainable Banking Network (SBN). 

These reforms require banks to assess, manage and report on environmental, social and governance (ESG) risks in their lending operations and put market incentives in place for banks to lend to green projects.

The Roadmap for Sri Lanka, officially launched in April 2019 by the Central Bank of Sri Lanka (CBSL) with support from the International Finance Corporation (IFC) and the United Nations Development Program (UNDP), encourages financial institutions and regulators to adopt international ESG risk management standards, helping promote green and inclusive growth in the country.

Of the 38 countries that make up the SBN, 16 are in Asia-Pacific, displaying a commitment within the region to sustainable finance and industry innovation. Ten Asia-Pacific economies have adopted national sustainable finance policies and voluntary principles while China and Indonesia are the only two nations globally to have progressed their sustainable financial systems to a maturing stage.

The report also captures the progress made by 14 countries globally to actively grow their green bond markets; and data shows increasing innovation by financial institutions to green their lending portfolios. Across Asia-Pacific, seven SBN member nations have issued green bonds.

“SBN members have demonstrated that transforming financial markets toward sustainability is possible,” said World Bank Group IFC Vice President Georgina Baker. 

“Emerging markets are at the forefront of this shift and SBN’s tools and guidance have laid the groundwork for more countries to follow suit.”

In addition to providing practical resources for countries undertaking sustainable finance reforms, the report also highlights the peer-to-peer knowledge-sharing of SBN members – a hallmark approach of the network.

“The report captures the real-world experience of SBN members to develop sustainable finance,” said Imansyah, Deputy Commissioner of International and Research, Indonesia Financial Services Authority (OJK) and a Co-Chair of the SBN Measurement Working Group. 

“Sharing lessons and knowledge among members has been an important catalyst to drive finance reforms, particularly as countries embark on these efforts.”

“Ultimately, SBN is about collaboration,” said Ye Yanfei, Deputy Director-General, China Banking and Insurance Regulatory Commission and Co-Chair of SBN Measurement Working Group. 

“By bringing together regulators, policymakers, trade associations and development institutions, SBN has been able to not only turn sustainable finance policies into action, but also strengthen measurement to capture market impact.”

Building on the collaborative framework, the SBN has also set up a taskforce to provide tailored support to help the region’s poorest countries, including Mongolia, Bangladesh, Nepal, Cambodia, Pakistan and Laos to overcome their barriers to developing sustainable banking policies.

Established in 2012, SBN now represents $ 43 trillion (86%) of banking assets in emerging markets. The report is based on an innovative results-measurement approach developed by SBN members as they work to convert sustainable finance. 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

China’s virus shutdown will hurt growth abroad

Friday, 28 February 2020

Many affluent Chinese fearful of being infected by the coronavirus and being quarantined by the State are staying home. Many companies and countries around the world are linked to the Chinese economy, which is likely to have far-reaching consequences


The reality of the system

Friday, 28 February 2020

The whole system of the country which has been crumbling is now on the verge of near collapse. The political regime, bureaucracy, intellectuals and the society in general did not have a sufficiently developed political imagination to understand the n


Writing on the wall

Thursday, 27 February 2020

Quick! Pick between reading this and opting to do something that really makes you happy. I suspect 99% of you would be more fulfilled getting to work half-an-hour earlier, going to market or school sooner than later, or simply goofing off at home or


Geneva: Right cause, wrong tactics

Thursday, 27 February 2020

The Geneva 2015 resolution is a hidden tripwire linked to a maze of claymore mines, some buried, some planted in ditches, others nested in trees. When this article appears, Sri Lanka may have nudged that tripwire. There was another, smarter, safer wa


Columnists More