The Bangko Sentral ng Pilipinas has joined the Network for Greening the Financial System as it works toward managing climate and environment related risks in a bid to mobilize capital toward a sustainable economy.
The international body is a group of central banks and supervisors organized to enhance the role of the financial sector in managing climate and environmental issues. The group is presently comprised of 69 member institutions and 13 observers.
BSP Governor Benjamin Diokno said the move was part of its initiative of promoting a “sustainability agenda” in the Philippine financial system, which includes encouraging and giving incentives to local banks to include these themes in their lending frameworks.
“The NGFS membership will strengthen the BSP’s collaboration with counterpart regulators in building awareness and contributing to the effective management and mitigation of the impact of climate and other environment-related risks in the financial sector,” Diokno added.
“The Philippines has a lot to share with respect to our country’s experience in coping with calamities and natural disasters,” he noted.
While the coronavirus disease 2019 pandemic may have taken center stage in recent months, climate and environmental risks continue to be part of our future and keeping those concerns in mind will be integral as the world adapts to the new normal that will require the recovery of economies to be sustainable.
The Philippines joining the NGFS will allow us to share our extensive experience with calamities and natural disasters while learning the best practices of more progressive and robust economies as we either restart or rebuild our economy after the long COVID-19 induced slowdown.
At this point, our economy and financial systems will be needing all the help and guidance we can get as we prepare to weather this storm and the other storms that are sure to follow.*