The Central Bank of Mongolia’s governor outlined the central bank’s work to incorporate climate risk into monetary policy, banking supervision and financial stability policy. Green loans reached MNT 2.55 trillion, or 5.7 percent of the banking sector’s total loan portfolio, in the first quarter of 2026, approaching the 6 percent target for 2026 and a minimum 10 percent target for 2030. The central bank has developed a climate stress-testing methodology and completed its first climate scenario analysis of systemically important banks. It is also building data infrastructure, consolidating banks’ sustainable finance information and operating a green-loan impact reporting system introduced in 2025. Measures to expand financing include a 75 percent risk weight for green building loans and a maximum 60-month term for qualifying green consumer loans through the end of 2027. Further work will focus on fully integrating climate risk into banks’ risk-management frameworks, improving disclosure and aligning supervision and regulation with international standards. The governor also identified uneven sectoral financing, with sustainable forestry and forest protection receiving MNT 4.7 billion, less than 1 percent of green loans.
2026-08-18Central Bank of Mongolia
Central Bank of Mongolia outlines climate risk integration, green loans reach 5.7 percent of total lending
The Central Bank of Mongolia outlined plans to deepen climate risk integration across banking supervision, monetary policy and financial stability policy. Green loans reached MNT 2.55 trillion, or 5.7 percent of total banking-sector lending, against targets of 6 percent in 2026 and at least 10 percent by 2030. Supporting measures include lower risk weights for green building loans, longer terms for qualifying green consumer loans and climate scenario analysis of systemically important banks.