The Central Bank of the Philippines (BSP) published sustainable finance roadmap and guiding principles that set out the necessary guideposts aimed at unlocking funds for sustainability projects and initiatives. The guidance takes a principles-based approach to identifying economic activities that contribute to supporting sustainable development, with a focus on addressing the impact of climate change, and aims to encourage the flow of capital to these activities. The roadmap will focus on activities related to both the greening of the financial system and the financing of sustainable activities, with a focus on climate change as a critical contributor to the achievement of Sustainable Development Goals.
The roadmap is the strategic action plan of government to promote sustainable finance in the Philippines and to address climate change and other environmental and social risks. The key plans for the development of sustainable finance include the following:
- Integrating sustainability considerations into macroeconomic policies and regulations
- Embedding sustainability into the risk management of the banking, insurance, and asset management sectors
- Encouraging sustainability and climate-related disclosures
- Improving the Sustainable Finance definition and creation of a principles-based taxonomy
- Establishing a sustainable pipeline database, both for public- and private-sector projects
- Joining international initiatives on sustainable finance
Additionally, BSP issued a report on the financial system for the first semester of 2021. The report underscored the sustained resilience of the financial system in Philippines amid COVID-19 pandemic. The assessment of the strengths and sources of vulnerabilities of the banking system, based on a set of Financial Soundness Indicators, suggested that the banking system remained sound and stable even during the health crisis. In the first semester of 2021, the banking system remained on solid footing as evidenced by continued growth in assets, deposits, and capital as well as through sufficient capital and liquidity buffers, net profits, and ample loan loss reserves. The report also highlights the satisfactory performance of the foreign currency deposit system, trust entities, quasi-banks, and other non-bank financial institutions during the period under review. In another update, BSP Governor emphasized that BSP is actively exploring Supervisory and Regulatory Technology (suptech/regtech) solutions that will automate regulatory supervision, reporting, and compliance assessment of cybersecurity risk management of banks.
- Press Release on Sustainable Finance Roadmap and Guiding Principles
- Guiding Principles (PDF)
- Roadmap (PDF)
- Press Release on Financial System Resilience Report
- Report (PDF)
- Press Release on Suptech/Regtech
Keywords: Asia Pacific, Philippines, Banking, Sustainable Finance, Climate Change Risk, Suptech, Regtech, COVID-19, ESG, Roadmap, Sustainable Development Goals, Disclosures, Guidance, BSP
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
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.
Previous ArticleACPR Issues RUBA Reporting Update and Schedule for Switching to LEI
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.