APD | Malaysia: Banks to report climate risks from projects

By APD writer Rishika chauhan

Cautioning the region about environmental challenges, Malaysia’s bank governor Nor Shamsiah Mohamad Yunus recently said that the financial institutions will pay sufficient attention to climate risks.

Talking about environmental degradation, especially in the context of the haze in Malaysia and neighbouring countries, he said, “It presents a major economic issue with direct implications on financial stability.”

“It is for this reason that Bank Negara Malaysia (BNM), along with many other central banks around the globe, are giving serious attention to climate risk,” he further informed.

He spoke about the new reporting requirements, explaining, “This framework aims to support informed decisions and analysis of exposures to climate risk in fund raising, lending and investment activities.”

A draft of the green assets classification is expected to be submitted by the end of this year and will then be open for feedback from the industry.

(ASIA PACIFIC DAILY)