Ulaanbaatar, Mongolia, March 24, 2014—IFC,
a member of the World Bank Group, has partnered with Mongolian Bankers
Association to introduce and implement sustainable banking practices to
help financial institutions improve their environmental and social risk
management, and contribute to greener and equitable economic growth.
Mongolia – well-known for its rich
natural resources – is committed to a low-carbon development path. Mongolian
banks have been discussing sustainability issues with other stakeholders
such as government agencies and corporates. Last November, 14 of the lenders
publicly declared their commitment to promoting sustainable banking practices
in the country.
IFC will support the Mongolian Bankers
Association’s plan to develop the Mongolian Sustainable Banking Principles
and industry guidelines by mid-2015. The guidelines will be based on international
benchmarks such as the IFC Performance Standards, the World Bank Group
Environmental, Health and Safety Guidelines, and the Equator Principles,
a credit risk management framework for determining, assessing and managing
environmental and social risk in project-finance transactions. IFC will
also help build capacity in local banks, consulting firms, and training
institutions to achieve this goal.
“The partnership with IFC is part of
ongoing efforts by Mongolian banks to contribute to green and inclusive
economic development in Mongolia,” said Norihiko Kato, Vice President
of the Mongolian Bankers Association. “With help from IFC, the association
will provide technical resources and knowledge to help our members improve
their sustainable banking systems and products.”
The Mongolian Bankers Association is
a self-regulated professional body initiated by 13 commercial banks, one
development bank, four financial and non-financial banking institutions,
and three foreign bank representative offices. Its vision is to lead the
banking and financial sector in supporting the sustainable development
and equitable economic growth of Mongolia.
“The project will enhance risk management
and expand lending to socially and environmentally friendly projects. This
will help generate real results toward greener growth,” said Tuyen D.
Nguyen, IFC Resident Representative in Mongolia. “IFC’s experience globally
and in Asia has demonstrated a strong business case for sustainable banking.”
In addition to investments across multiple
sectors in Mongolia, IFC is supporting this sustainable finance initiative
through the Environmental and Social Standards for Financial Institutions
Program in East Asia and the Pacific. The program provides advice to help
improve the environmental and social sustainability of banks in China,
Indonesia, Mongolia, the Philippines, Thailand, and Vietnam.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.