MAS published a joint statement on the seventh meeting of the ASEAN Finance Ministers and Central Bank Governors. At the meeting, the discussions covered topics such as the priorities for 2021, policy challenges in context of pandemic, green infrastructure financing, development of a taxonomy for sustainable finance and the ASEAN Sustainable Banking Principles, establishment of the Task Force on Sustainable Finance, and operationalization of the ASEAN cyber-security platform.
The participants of the meeting welcomed the initiative to develop an ASEAN Taxonomy for Sustainable Finance, which will be the overarching guide for all ASEAN member states, complementing their respective national sustainability initiatives and serving as ASEAN’s common language for sustainable finance. The taxonomy initiative has been jointly launched by the ASEAN Capital Markets Forum (ACMF), the ASEAN Insurance Regulators Meeting (AIRM), the ASEAN Senior Level Committee on Financial Integration (SLC), and the ASEAN Working Committee on Capital Market Development (WC-CMD). The participants endorsed the establishment of the ASEAN Taxonomy Board to develop, maintain, and promote a multi-tiered taxonomy that will consider ASEAN’s needs as well as international aspirations and goals. Such a multi-tiered ASEAN Taxonomy is inclusive and will facilitate an orderly and effective transition toward a sustainable ASEAN. The group looks forward to the announcement on the progress of the development of the ASEAN Taxonomy by the end of 2021.
The participants commended ASEAN central banks’ continued commitment and coherent response to sustainable finance development. The participants endorsed the initiative on ASEAN Sustainable Banking Principles, which will serve as guiding principles to help ASEAN central banks develop further sustainable banking guidelines and tools aligned with each respective country’s context. They welcomed the establishment of the Task Force on Sustainable Finance under the SLC, which will follow-up on the recommendations from the Report on the Roles of ASEAN Central Banks in Managing Climate and Environment-Related Risks (which was published in November 2020), as well as the ASEAN Sustainable Banking Principles; the task force will also coordinate with the relevant ASEAN Working Committees and other sectoral bodies on cross-cutting issues to advance the priority work agreed by the SLC. They also reiterated the commitment to accelerate infrastructure development and financing in ASEAN through mobilization of innovative financing. They commended the progress of the ASEAN Catalytic Green Finance Facility of the ASEAN Infrastructure Fund (AIF) as a platform for ASEAN Green Infrastructure by leveraging the AIF resources to accelerate green projects and bridge bankability gaps. The participants also discussed other sustainable finance initiatives for the insurance sector and capital markets.
With respect to promoting cyber resilience, the participants expressed satisfaction with the full operationalization of the ASEAN Cybersecurity Resilience and Information Sharing Platform (CRISP), with the entry into force for the participating ASEAN member states that have signed the Memorandum of Understanding for Sharing of Information during Activities of Digital and Technology Network on February 01, 2021, which allows information-sharing to combat cybersecurity threats and to develop collaborative mitigation actions for ASEAN Central Banks.
Keywords: Asia Pacific, Singapore, Banking, Sustainable Finance, Cyber Risk, ASEAN, Taxonomy, ESG, Banking Principles, Guidance, MAS
Previous ArticleJFSA Published Final and Proposed Rules Under Basel Framework
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.