news - Development Partners Launch Forum to Promote Sustainable Finance in Mongolia

Ulaanbaatar, Mongolia, May 13, 2013 – Dutch Development Bank FMO, Trade and Development Bank of Mongolia (TDB), IFC, a member of the World Bank Group, Mongolia Bankers Association (MBA) and the Banking and Finance Academy (BFA) today launched a sustainable finance forum to promote green growth in Mongolia as the country develops.

The four-day Mongolian Sustainable Finance Forum 2013, which started today with a CEO roundtable exclusively for banking chief executives and the Bank of Mongolia, aims to raise awareness, foster cooperation and facilitate policy development and knowledge sharing in sustainable development.

For the first time, different stakeholders, including local bank executives, government officials, key industry representatives and international experts, are gathering to discuss ways for the banking sector to capitalize on new business opportunities while ensuring Mongolia’s sustainable development. The resource-rich country is one of the world’s fastest-growing economies, having expanded 12.3 percent in 2012, according to the World Bank.

“It is a pivotal time for Mongolia’s economic development,” said Ms. Sanjaasuren Oyun, Mongolia’s Minister of Nature, Environment and Green Development, at the CEO roundtable. “The banking sector can play an important role in ensuring that the country’s economic growth can create long-term values and benefit more local communities.”

In the same vein, Mr. Bold Javkhlan, First Deputy Governor of the Bank of Mongolia said, “We are delighted that the sustainable finance forum is being organized in Mongolia. We hope that, in the near future, internationally recognized sustainable financing practices and standards will be implemented throughout the Mongolian banking sector. The journey has started and we will be working together with the banks to promote and support sustainable financing and development.”

The Mongolian government has attached great importance to green growth and environmental responsibility. In 2013, the government established a new National Green Development Strategy and an action plan to outline ways to build a greener economy.

In his opening speech, Mr. Nanno Kleiterp, Chief Executive Officer of FMO and co-convener of the event, expressed his delight at the high-level support for sustainability. “I am excited to see various stakeholders and decision makers presenting here today to support sustainability in Mongolia. I strongly believe Mongolia has the potential to become a leader in this new area among frontier economies.”

An increasing number of developing countries have created sustainable-finance frameworks and incentives, such as China’s Green Credit Policy and Nigeria’s Sustainable Banking Principles, to support the adoption of environmental and social standards as well as to explore sustainable business models. International organizations such as IFC and FMO have been leading this transformation with local partners in emerging markets.

“IFC’s own portfolio has shown that good environmental and social performance directly correlates with long-term financial return,” said Mr. Hyun-Chan Cho, IFC’s Country Manager for China, Mongolia, and Korea. “We are helping banks and companies in emerging economies to become more competitive and manage their non-financial risks smartly by sharing our global knowledge and local resources.”

TDB, one of the top five Mongolian banks with a focus on raising awareness on sustainability issues across the industry, has been implementing an internal environmental and social risk management framework it recently developed. “Environmentally and socially sustainable banking protects our assets and presents business opportunities by opening up new financial products and markets,” said Mr. Medree Balbar, Chief Executive Officer of TDB. “We are committed to sharing international best banking practices with our peers and educating our clients in this regard.”

Mr. Bold Magvan, President of the Mongolian Bankers Association, said, “Developing sector expertise and creating a level-playing field will be a crucial element for sustainability to thrive in Mongolia. In addition to using existing platforms and networks, we will be working together with the Bank of Mongolia, the Ministry of Environment and Green Development, and our international and local partners to assist the banking sector in building relevant knowledge and capacity over the short, medium and long term.” This view was echoed by Ms. Nergui Sandagjav, Director of the Banking and Finance Academy.

Mongolia’s central bank and its Ministry of Environment and Green Development are both represented in the Sustainable Banking Network for Regulators. The network, led by IFC, is an informal group of bank regulators and banking associations to develop standards, policies and guidelines for environmental and social best practices in their countries’ banking sectors.

The President of Mongolia, His Excellency Mr. Tsakhiagiin Elbegdorj, is expected to give a keynote speech at an industry seminar on May 15. More than 200 professionals from different sectors of the economy are expected to attend.

About FMO
FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.3 billion, FMO is one of the largest European bilateral private sector development banks.

About TDB
TDB, the oldest and the largest corporate bank in Mongolia, prides itself for its leading position as the universal banking service provider, offering full range of services delivered with dynamism and excellence in service and quality. TDB was the first to introduce modern banking technology, adopt IASB standards in financial reporting, become a member of SWIFT network, offer card and ATM services and commence gold exports into the foreign market. As the top international expertise derived from State bank of Mongolia origins, TDB is undoubtedly the international face of Mongolia with strong capabilities in corporate banking, international banking, treasury, retails and SME banking.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.

About MBA
The Mongolian Bankers Association is an independent, non-profit, non-government organization established in 2000 by the banking and non-banking financial institutions in Mongolia. As of today, we are the voice for 19 member financial institutions including 14 commercial banks, 4 non-bank financial institutions and one foreign Bank Representative Office. The Vision of the MBA is to become a powerful professional organization representing the bankers and financial officers, to lead the banking and financial sector to ensure the sustainable development and equitable economic growth of Mongolia, and to contribute substantially to the development of the country as the regional financial center

About BFA
The Banking and Finance Academy is a professional training institute of the banking and financial sector of Mongolia. It was established by several commercial banks of Mongolia with a goal to provide the most immediate and/or up-to-date training services for Mongolian banking and financial professionals and practitioners to enhance their professional knowledge and skills. The Academy is serving the growing need for professional financial education in the Mongolian banking and financial sector and the public.

For more information, contact:

Paul Hartogsveld

Communications advisor (PR)

T: +31 70 314 99 28
M: +31 6 11 58 9127
E: p.hartogsveld@fmo.nl