Thursday, September 28, 2023

Latest News Today

Assisting the shift towards eco-friendly banking in ASEAN’s Central Bank

ASEAN Central Bank Takes Significant Role in Green Financial Transition

During the 2023 ASEAN high-level seminar on “Aligning Policies for Climate Transition,” Bank Indonesia (BI) Governor Perry Warjiyo emphasized the significant role that the ASEAN Central Bank plays in assisting the green financial transition. In Bali’s Badung District, he stated, “The role of the central bank is not only to promote or focus on the green transition, but to support the transition, especially the green finance transition.”

News Summary

  • At the 2023 ASEAN high-level seminar on “Aligning Policies for Climate Transition,” Bank Indonesia (BI) Governor Perry Warjiyo stated that the ASEAN Central Bank is having a significant part in assisting the green financial transition.
  • Given that many global initiatives have continued to operate in accordance with the green transition, this step is essential.
  • The ASEAN Central Bank has several options for assisting the transition to green banking.

Assisting the Transition to Green Banking

The discussion of greening the financial sector has continued among the governors of several central banks worldwide, highlighting the importance of this step. The ASEAN Central Bank has several options for assisting the transition to green banking. For instance, the assistance could take the form of macroprudential policies, such as those that BI has released to support green and sustainable development. Additionally, banks financing green projects could receive rewards in the form of more liquidity, according to Warjiyo.

BI has also released a loan-to-value (LTV) ratio policy of 100% for banks funding green projects. Furthermore, the central bank offers technical assistance to local governments and supports their capacity-building efforts by hosting workshops on the planning and financing of development initiatives. “We are implementing this process through each of our 46 branches across the nation. We provide municipal governments with advice on necessary preparations for green projects,” Warjiyo stated.

BI has also chosen a Sustainable and Responsible Investment (SRI) strategy, in keeping with its general policy. Additionally, its management of foreign currency is concentrated on assets that have been certified as green and sustainable finance. In this instance, the central bank has a portfolio in the social sector and is using sharia bonds or sukuk sustainably, according to Warjiyo.

The Importance of Greening the Financial Sector

Many global initiatives continue to operate in accordance with the green transition, emphasizing the importance of greening the financial sector. The ASEAN Central Bank’s role in assisting the green financial transition is significant, and its options for supporting the transition to green banking are essential. By providing technical assistance and macroprudential policies, as well as rewards for banks financing green projects, the central bank is paving the way for a more sustainable future.

Follow us

Top News

Continue reading

Michigan Utility Companies Propose Using Low-Carbon Funds from Taxpayers to Invest in Natural Gas

Heat Pumps Could Save Maine Residents Hundreds of Dollars Annually News Summary According to the Maine State Housing Authority, a heat pump could save the typical Mainer who uses heating oil $913 annually (or $2,128 if gas is...

Caution Urged by EU Chief in Trading Technology with China

EU Must Protect Trade and Investment from China's Security and Military Threats, Warns von der Leyen European Commission President Ursula von der Leyen has cautioned that the European Union (EU) must be ready to implement measures to safeguard trade and...

Coinbase’s Expansion in Canada: A Follow-Up

Coinbase in Talks with Regulators to Stay in Canada, While Binance Considers Leaving As Canada tightens regulations for cryptocurrency exchanges, Coinbase is reportedly in discussions with regulators to stay in the country, while Binance is considering leaving....

Declining deposits highlighted by bank failures

Depositors Withdraw Funds Amid Bank Failures and Rising Interest Rates Recent bank failures and a significant increase in interest rates have led to an acceleration in the withdrawal of funds by depositors. This has raised concerns about the health of...

Lolita the Orca to Be Returned to the Pacific with an Established Agreement

Unlikely Coalition Announces Plan to Return Orca to Pacific Northwest In a surprising move, a coalition made up of a theme park owner, animal rights group, and NFL owner-philanthropist has announced a plan to return Lolita, an orca that has...

Lebanon Cancels $122M Airport Terminal 2 Plan Unexpectedly

Lebanon Cancels Contract for New Airport Terminal Lebanon's caretaker transportation minister has announced the cancellation of a contract for a new terminal at the country's main airport. The decision comes after criticism that no public bidding was held for the...

US Economic Growth for Last Quarter Revised Down to 26% Rate, Marking a Unique Change

US Economy Grew at 2.6% Annual Pace in Q4 Despite Rising Interest Rates The US economy maintained its resilience from October through December despite rising interest rates, growing at a 2.6% annual pace, the government said Thursday in a slight...

Jobless Claims Increase Among Americans; Layoffs Remain Minimal

Jobless Claims in the US Rise Slightly, But Still Remain Historically Low Despite the Federal Reserve's efforts to cool the economy and job market in its fight against inflation, U.S. applications for jobless benefits rose slightly last week. However, the...

Fire breaks out as BNSF train carrying ethanol derails in Minnesota, prompting evacuation of small town

Train Carrying Ethanol and Corn Syrup Derails and Catches Fire in Minnesota Evacuation and Emergency Response A train carrying “a form of ethanol” and “a corn syrup liquid” derailed and caught fire, forcing the evacuation of a Minnesota...

Egypt Implements Interest Rate Hike to Combat Soaring Inflation

Egypt's Central Bank Increases Interest Rates to Combat Inflation and Currency Depreciation Overview The Central Bank of Egypt has announced that it has raised interest rates in response to the country's ongoing battle with inflation and a depreciating currency. The increase...