Bangladesh accelerates progress in sustainable finance reforms: report

DHAKA Bangladesh is among thirty-eight emerging

market economies having initiated key banking reforms to drive development

and fight climate change, according to a report.

The second Global Progress Report of the IFC-facilitated Sustainable

Banking Network (SBN) also said 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, said an IFC press release today.

Of the 38 countries, 22 have adopted national sustainable finance policies

and voluntary principles, seven of which were launched in 2019 alone. The

report also captures the progress made by 14 countries to actively grow their

green bond markets; and data shows increasing innovation by financial

institutions to green their lending portfolios.

SBN members have demonstrated that transforming financial markets toward

sustainability is possible, said Georgina Baker, Vice President of IFC of

the World Bank Group.

Emerging markets are on the forefront of this shift � and SBN's tools and

guidance have laid the groundwork for more countries to follow suit. added

the IFC official.

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.

Bangladesh is among the group of countries advancing implementation of

sustainable banking framework over the past few years.

Since 2011, Bangladesh Bank has developed several policies to promote

sustainable finance, including Policy Guidelines on Green Banking in 2013,

and Guidelines on Environmental and Social Risk Management (ESRM) in 2017.

These guidelines encourage banks and financial institutions to incorporate

environmental and social risk management into their credit activities, and to

publish green banking and sustainability reports.

The guidelines reflect the commitment of the Government of Bangladesh to

sustainability, and the importance of the banking and financial sector in

helping the country to achieve progress towards Sustainable Development Goals

(SDGs) and nationally determined contributions (NDCs).

It is aspiring for us to observe the remarkable progression of Bangladesh

among its peers in the SBN global report. The report also provides us worthy

snapshot of spaces to improve further through innovation in the coming

years. said Khondkar Morshed Millat, General Manager, Sustainable Finance

Department of the Bangladesh Bank.

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.

Established in 2012, SBN now represents 53 financial regulators and banking

associations from 38 emerging countries committed to sustainable finance.

SBN's member countries represent $43 trillion-or 85 percent-of emerging

market banking assets.

Source: Bangladesh Sangbad Sangstha (BSS)

Bangladesh accelerates progress in sustainable finance reforms: report

DHAKA Bangladesh is among thirty-eight emerging

market economies having initiated key banking reforms to drive development

and fight climate change, according to a report.

The second Global Progress Report of the IFC-facilitated Sustainable

Banking Network (SBN) also said 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, said an IFC press release today.

Of the 38 countries, 22 have adopted national sustainable finance policies

and voluntary principles, seven of which were launched in 2019 alone. The

report also captures the progress made by 14 countries to actively grow their

green bond markets; and data shows increasing innovation by financial

institutions to green their lending portfolios.

SBN members have demonstrated that transforming financial markets toward

sustainability is possible, said Georgina Baker, Vice President of IFC of

the World Bank Group.

Emerging markets are on the forefront of this shift � and SBN's tools and

guidance have laid the groundwork for more countries to follow suit. added

the IFC official.

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.

Bangladesh is among the group of countries advancing implementation of

sustainable banking framework over the past few years.

Since 2011, Bangladesh Bank has developed several policies to promote

sustainable finance, including Policy Guidelines on Green Banking in 2013,

and Guidelines on Environmental and Social Risk Management (ESRM) in 2017.

These guidelines encourage banks and financial institutions to incorporate

environmental and social risk management into their credit activities, and to

publish green banking and sustainability reports.

The guidelines reflect the commitment of the Government of Bangladesh to

sustainability, and the importance of the banking and financial sector in

helping the country to achieve progress towards Sustainable Development Goals

(SDGs) and nationally determined contributions (NDCs).

It is aspiring for us to observe the remarkable progression of Bangladesh

among its peers in the SBN global report. The report also provides us worthy

snapshot of spaces to improve further through innovation in the coming

years. said Khondkar Morshed Millat, General Manager, Sustainable Finance

Department of the Bangladesh Bank.

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.

Established in 2012, SBN now represents 53 financial regulators and banking

associations from 38 emerging countries committed to sustainable finance.

SBN's member countries represent $43 trillion-or 85 percent-of emerging

market banking assets.

Source: Bangladesh Sangbad Sangstha (BSS)