BIS Launches Green Bonds Fund, RBNZ Affirms USD 100 Million Investment
BIS launched an open-ended fund for central bank investments in green bonds. The is denominated in US dollars, is structured according to Swiss law, belongs to the BIS Investment Pool (BISIP) family, and is managed in-house by BIS Asset Management. Meanwhile, RBNZ has affirmed its Climate Change Strategy through the investment of USD 100 million in green bonds. The climate change strategy of RBNZ focuses on the channels through which it can contribute to efforts to mitigate the effects of climate change. These include managing its own direct impact on the climate, reflecting climate risks in its core functions, and contributing to wider efforts to identify, monitor, and manage climate risks domestically and as part of the global regulatory community.
The BIS fund is a response to growing demand for climate-friendly investments among official institutions. The green bond fund initiative is intended to help central banks to incorporate environmental sustainability objectives in the management of their reserves. With the support of an advisory committee drawn from a global group of central banks, the fund pools BIS client assets to promote green finance through sizable climate-friendly investments and support the adoption of best market practices to deepen the green bond market. Eligible bonds have a minimum rating of A- and comply with the International Capital Market Association's Green Bond Principles and/or the Climate Bond Standard published by the Climate Bonds Initiative. The initiative is part of the broader commitment of BIS to supporting environmentally responsible finance and investment practices, in line with the BIS participation in the Central Banks and Supervisors' Network for Greening the Financial System (NGFS). Recently, BIS also published an article in the Quarterly Review that explores how environmental sustainability objectives might fit within central banks' reserve management frameworks.
Related Links
Keywords: International, Asia Pacific, New Zealand, Banking, Green Bonds Fund, Climate Change Risk, ESG, RBNZ, BIS
Previous Article
EU Artificial Intelligence Ethics Checklist Ready for TestingRelated 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.
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.
EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
