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
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
APRA Finalizes Guidance for New Prudential Standard on Remuneration
The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.
OCC Updated LIBOR Self-Assessment Tool for Banks
The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).
TCFD Updates Guidance for Financial Disclosures on Climate Risk
The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
BCBS Report Examines Progress on Adoption of Basel III Framework
The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.
ACPR Implements Updates Related to DPM Version 3.1
The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.
EBA Note Examines Transition Risks of Benchmark Rates
The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.
