The Central Bank of Mongolia has signed a memorandum of understanding with the International Finance Corporation under the Green Finance Market Development Project II technical assistance program to strengthen the banking sector’s resilience to climate-related risks. The agreement centers on tightening supervisory requirements for climate-related financial risks and embedding those risks more fully into banking supervision. Work under the memorandum will cover stronger collection, processing and reporting of relevant data, development of supporting infrastructure, and integration of climate-related risks into the supervisory process. The update follows a 2025 banking sector climate risk exposure assessment conducted with IFC and a climate scenario analysis carried out with the United Nations Economic and Social Commission for Asia and the Pacific, which found Mongolia’s banking sector is highly exposed to both physical and transition risks that could materially increase expected credit losses. The central bank said it will continue implementing measures under the memorandum to improve banks' preparedness and resilience, expand the availability of risk-related data, and strengthen banks' risk management frameworks.
Central Bank of Mongolia2026-07-22
Central Bank of Mongolia signs IFC memorandum to strengthen climate risk supervision in banking
The Central Bank of Mongolia has signed an agreement with IFC to strengthen climate risk supervision in the banking sector. The work will focus on supervisory requirements, risk data and supporting infrastructure. It follows earlier assessments that found Mongolian banks are highly exposed to physical and transition climate risks.