Mongolia and Kenya sign banking cooperation agreement

NAIROBI: Kenya Banking Association (KBA) and the Mongolian Bankers Association (MBA), members of the IFC-supported Sustainable Banking Network (SBN), signed a Memorandum of Understanding (MOU) to advance environmental and social risk management and sustainable financing practices.

The signing of ceremony took place during the sustainable finance related learning visit of the MBA representatives to Nairobi, facilitated and supported by the Dutch development bank FMO and IFC.

Mongolia and Kenya have both launched national policies or voluntary principles on sustainable finance.

National sustainable finance guidelines and principles define how financial institutions can manage environmental and social risks and meet growing financing needs for green and inclusive economic growth.

The Kenya-Mongolia cross border exchange is an example of peer knowledge exchange and learning visits conducted by SBN members.

As one of the founding members of SBN, the MBA has successfully positioned itself as a consensus builder, mobilizing the entire banking community to jointly develop, adopt and implement the Mongolian Sustainable Finance Principles.

Both IFC and FMO have been supporting this initiative since 2013. Mongolian Bankers Association forged a strong public-private partnership with the Bank of Mongolia and Mongolian Ministry of Environment and Tourism and the Mongolian Sustainable Finance Principles have become the key component of the Mongolian Government’s Green Development Policy.