Manila, February 13, 2018——The Bangko
Sentral ng Pilipinas (BSP) and International Finance Corporation (IFC),
a sister organization of the World Bank and member of the World Bank Group,
are hosting a high-level forum today. The event — in sync with BSP’s
efforts to help the local banking sector step up its game on sustainable
finance — aims to encourage Philippine banks to integrate environmental,
social and governance (ESG) standards in their operations, to increase
financing for climate-friendly and socially inclusive projects.
The forum aims to help banks’ boards and senior executives with an in-depth
understanding of ESG approaches and practices, and also offer them an insight
into sustainable finance initiatives, opportunities, and resources.
The half-day event brings together local and international practitioners
in sustainability, including foreign banking associations, development
organizations, and financial institutions. The event provides a platform
to share thoughts about global developments in climate finance and ESG
integration, and showcase local experiences in sustainable finance.
Governor Nestor A. Espenilla, Jr. stated that “The Bangko Sentral ng Pilipinas
will continue to support such capacity building initiatives in response
to the needs articulated by the banks. With greater awareness and exposure
to how ESG and environmental and social risk management (ESRM) can be integrated
in the business practices, we believe Philippine banks will see positive
effects on their bottom line, client retention and organizational reputation
while contributing to sustainable growth and development.
This event marks the second knowledge-sharing collaboration between BSP
and IFC since they signed a memorandum of understanding (MoU) in May 2017.
The MoU covers activities that enhance capacities and raise ESG standards
in the banking sector. BSP is committed to promoting corporate governance
and ESG, and is a member of the IFC-supported Sustainable Banking Network
(SBN), a knowledge and capacity-building platform for financial regulators
and banking associations. The BSP benefits from, and contributes its experiences
to SBN, which currently comprises 34 member-countries.
“In bringing together leaders of the Philippine financial institutions
and banking organizations for this forum, BSP is taking significant steps
to promote sustainable finance in the country,” said Vivek Pathak, IFC
Director for East Asia and the Pacific. “Green finance presents a huge
opportunity to deliver the country’s goals on sustainable development
and climate action. Higher standards of environmental and social risk management
by financial institutions will encourage more private finance to flow into
greener and socially inclusive projects,” he added.
Also at the event, IFC, the Bankers Institute of the Philippines (BAIPHIL),
which serves as the banking sector’s training arm, and Mongolian Bankers
Association (MBA), signed an MoU to advance sustainable finance and green
banking practices in the Philippines and Mongolia through capacity development
and knowledge-sharing. Under the agreement, BAIPHIL and MBA will be strengthened
as repositories of knowledge on sustainable finance and green banking in
their respective countries and in the region. This agreement builds on
a learning exchange that was held in Mongolia last year. BAIPHIL and BSP
representatives participated in that event to learn from MBA’s and its
member banks’ experiences in promoting sustainable finance.
IFC’s E&S risk management and CG programs in the Philippines are implemented
in partnership with the Government of Japan and State Secretariat for Economic
Affairs of Switzerland respectively.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org
About IFC-supported Sustainable Banking Network
The Sustainable Banking Network (SBN) is a knowledge and capacity-building
platform of financial regulators, banking associations, and environmental
regulators from emerging markets committed to advancing sustainable finance
in line with international good practice. The Network facilitates the collective
learning of members and supports them in policy development and related
initiatives to create drivers for sustainable finance. IFC acts as the
Secretariat of the Network, playing the role of facilitator and technical
adviser to SBN. SBN membership now consists of 34 member countries, which
represent more than 85 percent of the banking assets across emerging markets.
For more information on the Sustainable Banking Network, visit www.ifc.org/sbn.
About Bangko Sentral ng Pilipinas
The Bangko Sentral ng Pilipinas (BSP) is the central monetary authority
of the Republic of the Philippines. Its primary objective is to maintain
price stability conducive to a balanced and sustainable economic growth.
It aims to promote and preserve monetary stability and convertibility of
the national currency. The BSP provides policy directions in the areas
of money, banking and credit. It supervises operations of banks and exercises
regulatory powers over non-bank financial institutions with quasi-banking
functions. The BSP likewise takes lead in promoting an efficient payments
and settlements system by providing the necessary infrastructure through
the operation of the Philippines’ real time gross settlement system.
The vision of the BSP is to be a world-class monetary authority and a catalyst
for a globally competitive economy and financial system that delivers a
high quality of life for all Filipinos. To support the achievement of this
vision, the BSP has committed to promoting financial inclusion as a means
to achieve inclusive growth. The BSP financial inclusion initiatives cover
four broad areas (a) policy and regulation, (b) financial education and
consumer protection, (c) data and measurement, and (d) advocacy programs.
For more information about the BSP, visit www.bsp.gov.ph