Bank of Mongolia and IFC to cooperate on strengthening climate-related risk management

On 22 July 2026, the Bank of Mongolia and the International Finance Corporation (IFC) signed a Memorandum of Understanding (MOU) under the Green Finance Market Development Project II technical assistance program. The MOU was signed by the Governor of the Bank of Mongolia Mr. S.Narantsogt, and Ms. Victoria Delmon, World Bank Group Resident Representative for Mongolia.

The MOU aims to strengthen the resilience of Mongolia’s banking sector to climate-related risks. Under the MOU, the Bank of Mongolia and IFC will work together to enhance supervisory requirements for climate-related financial risks, strengthen the collection, processing, and reporting of relevant data, develop the necessary supporting infrastructure, and integrate climate-related risks into the banking supervisory process. 

In 2025, the Bank of Mongolia, in collaboration with IFC, conducted the Banking Sector Climate Risk Exposure Assessment Report, while the Climate Scenario Analysis was carried out jointly with the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). The assessments found that Mongolia’s banking sector is highly exposed to both physical and transition risks arising from climate change, which could lead to a material increase in expected credit losses. 

In response, the Bank of Mongolia will continue implementing comprehensive measures under this MOU to strengthen banks preparedness and resilience, improve the availability of risk-related data and enhance banks risk management frameworks.