Kingston, February 17, 2022- IFC, a member of the World Bank Group, welcomed the Bank of Jamaica (BOJ) as a new member of the Sustainable Banking and Finance Network (SBFN) that IFC coordinates. Jamaica will be the second country in the Caribbean region after the Dominican Republic to join the Network, contributing to greater presence of sustainable initiatives in the region.
The main objective of the SBFN is to promote sustainable financing in the banking and non-banking sector, including capital markets, institutional investment, and insurance. As a member, Jamaica will be an active part of this exchange of experiences, know-how and best practices among the SBFN community. As of February 2022, SBFN members comprise 70 institutions from 47 countries and $43 trillion (86 percent) of the total banking assets in emerging markets.
SBFN has also been supporting countries in Latin America and the Caribbean on sustainable finance since the Network's inception in 2012. As of February 2022, SBFN members now include 19 financial sector regulators and industry associations from 13 countries in the Latin American region, as well as four regional financial sector bodies: the Federation of Latin American Banks (FELABAN), the Central American Council of Superintendents of Banks, the Insurance and Other Financial Institutions (CCSBSO), the Association of Supervisors of Banks of the Americas (ASBA), and the Eastern Caribbean Central Bank (ECCB).
"One of IFC's priorities in the Caribbean is to promote sustainability, and we've seen how promoting green initiatives, beginning with the banking sector, can have a trickle-down effect in other sectors. We, at IFC, look forward to deepening our relationship with the Bank of Jamaica, along with the SBFN, to support the Bank in its sustainable journey to promote greener, more sustainable banking in Jamaica," said Judith Green, Regional Manager for the Caribbean.
Marcela Ponce, the IFC Climate Finance Lead and SBFN Regional Coordinator for Latin America and the Caribbean, adds: "The participation of local banks and other financial institutions in networks that promote sustainability, such as the SBFN, is an imperative for the region. This kind of intra-sectorial collaboration has a great impact when it comes to harmonizing good practice expectations, mitigating environmental, social and governance (ESG) risks, and greening the banking and finance sector."
Bank of Jamaica's Deputy Governor for Bank Supervision, Maurene Simms, affirms the Bank's commitment to greening the banking sector within Jamaica: "Bank of Jamaica is committed to promoting sustainable measures within the banking sector. We're excited to join the SBFN in sharing knowledge, adopting international best practices, and leveraging the Network's thought leadership on sustainable initiatives in banking in the region."
SBFN members are committed to moving their financial sectors towards sustainability with twin goals. First, to improve the management of ESG risks— including climate risks — across the financial sector. And second, to increase capital flows to activities with positive environmental and social impacts, including climate change mitigation and adaptation.
BOJ now has the opportunity to build the skills and knowledge of local financial institutions to manage ESG risks and develop financial products and services that help achieve the Sustainable Development Goals (SDGs) and address climate change.
SBFN's support will leverage comprehensive research and case studies from SBFN's 3rd Global Progress Report, released in October 2021 – Accelerating Sustainable Finance Together: Evidence of Policy Innovations and Market Actions across 43 Emerging Markets. Download at www.sbfnetwork.org.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. or more information, visit www.ifc.org.
About the Bank of Jamaica
BOJ stands at the center of the local financial system and is charged with the responsibility to promote and maintain financial system stability. In addition to its responsibilities as the monetary authority, the Bank also supervises the activities of deposit taking entities, as well as provides regulatory oversight for foreign exchange traders and remittance companies. In addition, the Bank seeks to promote the development of the local financial markets, and regulates and supports the major clearing and settlement systems through which financial institutions execute the transfer of funds for a range of financial transactions.
About the Sustainable Banking and Finance Network (SBFN)
The Sustainable Banking and Finance Network (SBFN) is a voluntary platform for knowledge sharing and capacity building on sustainable finance for central banks, financial sector regulators, ministries of finance and environment, capital market authorities, and industry associations across emerging markets that are committed to advancing sustainable finance in line with international good practice and national priorities. Facilitated by IFC as secretariat, and supported by the World Bank Group, SBFN helps mobilize information, resources, and practical support for members to design and implement national initiatives that advance sustainable finance at national, regional, and global levels. For more information, visit www.sbfnetwork.org.
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