Development Bank commits to sustainable operation
Development Bank of Mongolia hosted a capacity building workshop on the integration of sustainable financing principles into the bank’s operations on May 7.
“Mongolia needs a significant amount of financial resources to meet its nationalized Sustainable Development Goals (SDGs), and the financing gap has further widened due to the impact of the COVID-19 pandemic. Among the systemic changes needed to address this gap, integrating sustainable financing principles to the operation of Development Bank of Mongolia is a vital component as the bank is an instrumental force for driving the country’s development,” the bank said.
Sustainable finance is being incorporated into the bank’s operations under the UN Joint Programme, implemented with the Ministry of Finance under the sponsorship of the UN Joint SDG Fund. The Joint Programme provided technical assistance to Development Bank to develop recommendations and action plan on the integration of sustainable financing principles into its operations. The draft lending policy and guidelines, risk assessment tools and templates have also been developed to serve as the basis for introducing sustainability principles.
Development Bank has an important and unique role due to its size and importance in the Mongolian financial landscape. The bank has the responsibility and opportunity to create a positive impact with sustainable finance while reducing negative impacts by applying sustainability criteria in its lending activities. Enhancing the bank’s sustainability performance is expected to further broaden the investor universe, increase access to liquidity and positively impact the bank’s reputation.
“The integration of sustainable financing principles into Development Bank’s operations has a significant role in shifting the weight of the overall financing landscape towards sustainability. Therefore, it will play a critical role in the implementation of the integrated national financing strategy for sustainable development over the coming years and facilitating Mongolia’s achievement of the SDGs,” said UNDP Resident Representative Elaine Conkievich in her opening remarks.
During the workshop, CEO of Development Bank N.Munkhsukh expressed her commitment and support in developing the bank as a sustainable bank and continue cooperation in sustainable financing.
The consultants’ report is scheduled to be out in June 2021 for public dissemination.