BSP strengthens stakeholder engagement for adoption of sustainable finance principles

The Bangko Sentral ng Pilipinas (BSP) continues to strengthen engagement with varied stakeholders in the domestic and international fronts to intensify its campaign for the adoption of sustainable finance principles.

During the recent general membership meeting of the Bankers Institute of the Philippines, BSP Governor Benjamin E. Diokno said the central bank, in partnership with the World Wildlife Fund Philippines, the World Bank, and industry associations, will conduct vulnerability assessments and stress testing exercises with volunteer banks.

“These exercises will enable the BSP to gather more data and information for financial surveillance analysis and policy development on sustainable finance,” said BSP Governor Benjamin E. Diokno.

The campaign for the adoption of sustainability principles is in line with the BSP’s Sustainable Finance Framework issued under Circular No. 1085.

The framework safeguards the stability of the financial system against potentially significant and protracted impact of climate change and other environment related risk.

It also aims to mainstream the adoption of the sustainability agenda in the financial industry and encourages the offering of green and sustainable finance instruments.