IFC-International-Finance-Mongolia-and-Cambodia-Partner-to-Promote-Sustainable-Finance

IFC, a member of the World Bank Group, the Association of Banks in Cambodia (ABC), and the Mongolian Bankers' Association (MBA), have signed a memorandum of understanding (MoU) to jointly develop and promote an environmental and social risk-management system and sustainable finance principles for Cambodian financial institutions.

IFC, through SBN, will facilitate the information exchange and knowledge sharing, providing practical guidance and support. Both ABC and MBA are members of the IFC-supported Sustainable Banking Network (SBN).

Founded in 2012 by IFC and ten countries, SBN is a unique, pioneering initiative that is changing the global landscape of green finance through knowledge sharing and capacity building for banking regulators and banking associations in 31 countries representing 85 percent of emerging market-banking assets. IFC convened the network and provided technical support, supported members in policy development, and facilitated a series of cross border learning exchanges among members across regions, contributing to replication of practical knowledge and cooperation.

The Mongolian Bankers Association, supported by IFC and FMO, the Dutch development bank, started to develop the Mongolian Sustainable Finance Principles in 2013. To date, all 13 Mongolian commercial banks have adopted sustainable finance policies, along with the relevant procedures and risk-assessment tools. They have appointed dedicated staff for sustainable finance and the Mongolian Sustainable Finance Principles have become the key component of the Mongolian Government's Green Development Policy.

'Over the past years, Mongolia has made some great progress to transform its domestic financial systems to support national goals on climate change and sustainable growth,' said Mr. Unenbat Jigjid, CEO of Mongolian Bankers Association. 'We'd like to promote cross border cooperation and share our best practices to other emerging markets and SBN members, like Cambodia.'

The Association of Banks in Cambodia has played an active and vital role in promoting dialog and cooperation among its 53 members at national and regional levels to strengthen the capacity and address the challenges faced by sustainable finance in the country.