Dhaka, Bangladesh, April 17, 2011—
IFC, a member of the World Bank Group, is partnering with Bangladesh Bank, the country’s central bank, to launch jointly developed environmental risk-management guidelines to help the financial sector assess environmental risks and develop mitigation strategies when taking credit decisions.
The IFC-managed SouthAsia Enterprise Development Facility, in partnership with the United Kingdom’s Department for International Development and the Norwegian Agency for Development, supported Bangladesh Bank in developing pioneering guidelines to help streamline solutions for managing environmental risks across the country’s financial sector.
The comprehensive guidelines were developed by Bangladesh Bank in collaboration with IFC, and with input from Bankers’ Associations and financial sector stakeholders, and have been issued to all financial institutions in the country. The guidelines help banks classify investments into high, medium, and low-risk categories. They also include sector-specific checklists to complement the general due-diligence guidelines.
“The guidelines will help standardize the approach toward environmental risk management and allow banks to operate on a level playing field,” said Atiur Rahman, Governor, Bangladesh Bank.
“Financial institutions will be encouraged to adopt these guidelines given the benefits in terms of efficient risk and reputation management.”
Ian Crosby, Manager of IFC Advisory Services in Bangladesh, said, “In line with IFC’s role to promote sustainability in the country’s financial sector, our work with Bangladesh Bank to develop guidelines on environmental risk management and their adoption by local banks will encourage sustainable project financing.”
Although Bangladesh has enacted national legislations and guidelines for environment-friendly operations for several sectors including agribusiness and chemicals, there have been no guidelines for the financial sector until now. In addition, financial institutions in Bangladesh need to strengthen their ability to evaluate environmental risks as part of lending and investment activities.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
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