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National Bank of Cambodia calls for green finance policies

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The National Bank of Cambodia (NBC) continues to call on financial institutions in the Kingdom to put policies in place to promote green finance and friendly investments. Hong Menea

National Bank of Cambodia calls for green finance policies

The National Bank of Cambodia (NBC) continues to call on financial institutions in the Kingdom to put policies in place to promote green finance and friendly investments, it said on Thursday.

This comes after the Swiss-based Bank for International Settlements (BIS) on the same day launched an open-ended fund for central bank investments in green bonds.

The fund aims to tackle the growing demand for climate-friendly investments among its member institutions and help the central banks incorporate environmental sustainability objectives in the management of their reserves.

The NBC, which is a member of the BIS’ Advisory Committee, has expressed support for the initiative.

“As climate change is increasingly viewed as one of the main sources of uncertainty for economic growth and could adversely affect social and environmental conditions, green financing opens many profitable ways for investors to help protect the planet,” said the NBC.

NBC governor Chea Chanto said in the release: “As a central bank, our role is to contribute to mitigating financial risks triggered by the impact of climate change on economic, social, and environmental conditions.

“We strongly encourage all financial institutions to put in place policies that promote green finance and support climate-friendly investments,” he said.

Early in August, the Association of Banks in Cambodia signed two memorandums of understanding on “Cooperation of Sustainable Finance” with the Ministry of Environment, the NBC and USAID to strengthen and

develop sustainable financial cooperation in the banking sector.

The goal of the MoUs was to strengthen and develop sustainable financial cooperation in the banking sector and support environmental protection, natural resource management and climate change in the Kingdom.

Canadia Bank Plc director of finance Ou Sophannarith told The Post on Monday that his bank supports the NBC’s appeal.

“It’s good for our nation, as well as helping to grow the sustainable banking sector and securing environment protection.

“Our [Canadia Bank’s] credit policy states that before providing loans, we are always to look at customer’ business interests and whether our investments will affect the environment,” he said.

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