Green financing deal inked to foster green banking practices

Oyundelger 2018-02-26 05:02

Economy

Mongolian Bankers Association and the International Finance Corporation, the World Bank’s private sector arm, signed a memorandum of understanding to develop green banking practices in Mongolia.

Green financing deal inked to foster green banking practices. Mongolian Bankers Association (MBA) and the International Finance Corporation (IFC), the World Bank’s private sector arm, signed a memorandum of understanding to develop green banking practices in Mongolia. Under the agreement, MBA will be strengthened as repositories of knowledge on sustainable finance and green banking in Mongolia and in the region. Vivek Jamwal, practice head of risk and research at Singapore-based Stradegi Investment Management Consulting, says the MOU can help grow awareness of environment, social and governance (ESG) financing and investment. It will pave the way for more green financing over time, and that "asset owners and asset managers will have a choice to allocate to green financing or to create green fixed income products. The next logical step will be measuring the impact on an environment, social and governance scale, and hence will pave the way for environment, social and governance scale,  ratings to be done on those asset owners and asset managers.