Superintendency of Banks of Panama presents the FISDE regional programme to integrate ESG into financial regulation and supervision

The Superintendency of Banks of Panama published an update on the Sustainable Finance for Development (FISDE) initiative, a regional effort by financial and banking supervisors in Central America, the Dominican Republic and Colombia to develop practical solutions and guidance for integrating environmental, social and governance (ESG) criteria into financial regulation and supervision. Led by the Central American Council of Superintendents of Banks, of Insurance and of Other Financial Institutions (CCSBSO) and supported technically and financially by the International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO) and Norfund, FISDE developed regional methodologies and tools to address climate and social risks, including exposures in bank portfolios to extreme weather events. Workstreams cover a regional green finance taxonomy, ESG criteria for risk assessment by regulators, supervisors and financial institutions, and climate and social risk management. Pilot exercises in selected banks across CCSBSO member jurisdictions identified levels of exposure to climate and social risks and produced national roadmaps to advance supervision of these risks in line with international standards. The programme is designed to be implemented gradually and adapted to each country’s level of progress and priorities, alongside supervisor training supported by partnerships with academic institutions and multilateral organisations.