Ulaanbaatar city, November 21, 2013: Today,
the Mongolian banking sector made a public declaration to jointly promote
sustainable banking practices in Mongolia. This is part of on-going efforts
of the industry to contribute to economic, green and inclusive development
in the country. The public declaration was made through the signing of
a joint commitment statement by all the 14 Mongolian commercial banks to
introduce a sustainable funding framework in the Mongolian banking and
In May 2013, the first Mongolian Sustainable
Finance Forum was organized in Ulaanbaatar city. The event brought together
all Chief Executives of the commercial banks in Mongolia and international
development banks to jointly discuss environmental and social issues that
are likely to impact Mongolia’s long term development goals. The initiative
and program was supported by the Government of Mongolia, Ministry of Environment
and Green Development, the Bank of Mongolia and Financial Regulatory Committee,
who were also present. There was a unanimous agreement to cooperate and
the matter of being responsible for economic growth and green and inclusive
development was given a great significance. All CEOs of the banks present
indicated that the Mongolian banking sector had an important role to play
in promoting sustainable development in Mongolia through the loans they
provide and the projects they finance in the country.
According to the President of the Mongolia
Bankers Association, Bold Magvan: “This is an important day for Mongolia.
Banks are beginning to realize that they can be agents of change to encourage
their clients to invest in projects that minimize damage to the Mongolian
environment and protect the wellbeing of its people. The signing of the
joint statement of declaration is one more positive step in that direction”.
Accordingly, several concrete actions
are being planned to enable banks make informed and socio-environmentally
friendly business decisions, to introduce internationally accepted sustainable
financing standards into banking operations, to develop and implement certain
policies and procedures specifically designed for the banking industry.
Understanding of banking customers and the general public about the green
development and sustainable financing will also be increased.
The initiative to jointly develop the
Mongolian Sustainable Finance Initiative was introduced by the Dutch Development
Bank (FMO), Trade and Development Bank of Mongolia (TDB), International
Finance Corporation (IFC), Mongolian Bankers Association (MBA) and the
Banking and Finance Academy (BFA), and the first Mongolian Sustainable
Finance Forum was organized in May 2013.
Senior executives of the FMO and IFC
partners have shown their support for the important steps the Mongolian
banking sector is taking to promote sustainable development. Linda Broekhuizen,
Director of Financial Institutions at FMO, mentioned that: “Through this
joint commitment statement, Mongolia has shown leadership by taking concrete
steps to work together as a banking industry to raise awareness on environmental
and social issues and promote sustainable lending and investments”.
"IFC has found that sustainable
banking enhances risk management and opens up new markets for banks”,
Tuyen Nguyen, Resident Representative in Mongolia for IFC, a member of
the World Bank Group. “We are also working with Mongolian partners to
tap into new opportunities such as climate-friendly projects.”
The initiative of promoting sustainable
finance among banking sectors is also being designed and gradually implemented
in countries such as China, Vietnam, Nigeria, Brazil and a few other countries.
International standards such as the “Equator Principles” and “International
Finance Corporation Performance Standards” continue to be the benchmarks
for sustainability and through proper implementation will help to drive
environmental and socio-economic development.
MONGOLIAN BANKERS ASSOCIATION