BSP Issues Statements on Digitalization and Sustainable Finance
The Central Bank of the Philippines (BSP) announced its commitment to helping microfinance institutions move forward in their digitalization journey. The BSP Governor Benjamin E. Diokno urged microfinance institutions to explore digital innovations under the Digital Payments Transformation Roadmap of BSP. One of the key initiatives of the roadmap is the issuance of a policy on digital banks, which can act as service partners for microfinance institutions. BSP also encouraged trust entities to actively consider environmental, social, and governance (ESG) standards in their risk management and capital allocation processes. During a summit, the BSP Governor underscored the importance of differentiated investment strategies for funds classified as sustainable. BSP is advocating the wider adoption of sustainable finance, which incorporates ESG standards to assess the value, performance, and long-term growth of an asset.
BSP also announced its commitment to pursuing the "G.R.E.E.N. strategy" as part of its broader push to integrate sustainability into the operations of its supervised entities and the entire financial system. The strategy is implemented through regulatory issuances, which aim to embed sustainability principles in the strategies, corporate governance, risk management, and operations of banks. The strategy is intended to direct the flow of capital toward green and sustainable projects. As per the BSP Governor, the central bank will put "G.R.E.E.N. strategy" into action through the following initiatives:
- Guiding the financial system and promoting a conducive backdrop for sustainable finance to flourish
- Raising awareness and building capacity as a continuing task to mainstream sustainable finance and increase appreciation of sustainability principles
- Enabling a regulatory environment through policy issuances
- Engaging all stakeholders
- Navigating the path toward post-COVID-19 economy and a financial system that is more stable, resilient, and inclusive
Related Links
- Press Release on Microfinance Institutions
- Press Release on ESG Standards
- Press Release on G.R.E.E.N. Strategy
Keywords: Asia Pacific, Philippines, Banking, Sustainable Finance, Climate Change Risk, ESG, Fintech, Digital Banks, Regtech, BSP
Featured Experts
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
James Edwards
James leads the initiative to model the risk implications of climate change for corporates, SMEs, and sovereigns.
Previous Article
BOJ Proposes Annual Survey on Climate Change DevelopmentsRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
