Network for Greening the Financial System (NGFS)

The Network for Greening the Financial System (NGFS), a network of 75 central banks and financial supervisors, was created in the year 2017. At present, the NGFS has 83 members and 13 observers.

Key Points for UPSC Prelims

• It aims to promote green finance and recommend the role of central banks in climate change. It supports the best practices for the development of climate risk management in the financial sector.
• The NGFS was originally announced at the Paris “One Planet Summit” in December 2017. Its secretariat is hosted by the Banque de France (Bank of France).
• It was launched by 8 founding central banks, under the leadership of three dignitaries from central banks of France, Dutch, and England.
• The Reserve Bank of India is not a member of NGFS.

ADB joins NGFS as Observer

Recently in July 2020, Asian Development Bank joined the Network for Greening the Financial System as an Observer.  ADB joined the ranks of the International Finance Corporation (IFC), the World Bank, the Organisation for Economic Co-operation and Development, and the International Monetary Fund (IMF), as NGFS observers.

U.S. Federal Reserve joins Network of Central Banks and Supervisors for Greening the Financial System (NGFS)

The U.S Federal Reserve Board has recently joined the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) as a member.

This comes after the inclusion of climate change in the regular assessment of financial stability vulnerabilities for the first time by the Fed.

Asian Development Bank

It is a regional development bank that was formed in the year 1966. It is headquartered in Manila, Philippines. At present, ADB has 68 members.

U.S. Federal Reserve

US Federal Reserve is the central bank of the United States of America. It performs general functions like conducting the nation’s monetary policy, fosters safety and efficiency of payment and settlement system, and promotes the stability of the financial system. It was formed in the year 1913.