A bank in Nepal is partnering with IFC, a member of the World Bank Group, to promote sustainable finance.
IFC will help Nepal Rastra Bank (NRB), the central monetary authority of the country, adopt improved environmental and social risk management practices to strengthen its portfolio performance, generate business opportunities and boost competitiveness in the region.
As part of the IFC’s Sustainable Banking Network (SBN), NRB also benefits from the experience and knowledge of other members.
The SBN works with associations and regulators to level the playing field for banks and encourage green investment. To date, 15 SBN member countries have launched sustainable finance policies, guidelines and roadmaps.
Shiba Raj Shrestha, NRB Deputy Governor said: “We want to help financial institutions effectively manage environmental and social risks associated with the projects they finance and increase support to businesses that are greener, climate friendly and socially inclusive.
“It is vital that financial institutions come together to establish an effective and robust environmental and social management system.”
IFC is sharpening its focus in Nepal to improving access to energy through various measures, including sustainable hydropower development.