(CBS) The Central Bank of Sāmoa (CBS) on 3rd July 2019 has joined the Sustainable Banking Network (SBN). Launched in 2012 by the World Bank Group’s International Finance Corporation (IFC), the SBN is a network of emerging markets’ financial regulators and banking associations committed to advancing the sustainable finance agenda.
Sustainable finance generally refers to the provision of finance or any financial service for investment purposes that supports economic growth while taking into account environmental, social and governance (ESG) considerations.
Recognizing the integral role of the financial system in supporting a country’s sustainable economic development and particularly in the face of growing risks and challenges to the environment, central banks and regulatory authorities worldwide have noted the need for global actions from financial practitioners.
In Sāmoa, the Central Bank will work collaboratively with the financial institutions to drive sustainable finance. In particular, the focus will be on raising market awareness as well as designing appropriate policies and guidelines to boost the provision of finance for green-growth economic activities. This will also include coordination with the relevant Government ministries to ensure the potential supply of sustainable finance in the country is consistent with national priorities in addressing the issues of climate change and other environmental concerns.
As part of this initiative, the Central Bank will also conduct consultations with relevant stakeholders through surveys and other avenues as appropriate. This will enable the Central Bank to determine where we are at present and how Sāmoa’s financial system can contribute efficiently and effectively to sustainable finance and economic development in the years ahead.
The Central Bank is committed to providing Sāmoa’s support to global efforts in increasing sustainable finance and recognizes the need for beneficial financial practices and operations for the economic sustainability and prosperity of Sāmoa.
CBS, is only the second Pacific Island member along with Fiji, in the 38 membership of the network.