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.
Previous Article
BOJ Proposes Annual Survey on Climate Change DevelopmentsRelated Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.