Bank Negara, World Bank publish study on nature-related risk

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KUALA LUMPUR: Bank Negara and the World Bank have printed a report that examines the connection between the Malaysian monetary sector and nature, and gives an evaluation of nature-related dangers by banks’ financing actions.

In a joint assertion, Bank Negara and the World Bank mentioned the report, entitled “An Exploration of Nature-related Financial Risks in Malaysia”, gives a launch pad for additional study within the space and highlights the significance of tackling nature loss and local weather change in a coherent method.

“It additionally recognises the chance to leverage on the progress made on local weather initiatives to deal with broader nature-related dangers,” it mentioned.

Bank Negara mentioned it could proceed to interact with the monetary sector and different key stakeholders to construct capability on this space.

“Ecosystem and planetary health matters to economic and financial stability.

“While the primary responsibility for addressing these priorities rests with the government, the financial industry and authorities have a critical interest in deepening our understanding and appreciation of the interactions between climate and naturerelated risks – because how these risks evolve, both affect and are affected by, the actions of financial institutions,” mentioned Bank Negara governor Tan Sri Nor Shamsiah.

World Bank nation director for Brunei, Malaysia, Philippines and Thailand Ndiame Diop famous that the study identifies and quantifies nature-related monetary dangers to place authorities in a greater place to prioritise initiatives to handle the priority.

“This report is the primary of its type printed by a central financial institution in Asia. We hope that it’ll present an instance for different nations going through comparable challenges,” added Ndiame.



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