The AIM – Gov. Jose B. Fernandez, Jr. Center for Sustainable Finance (JBF Center for SF) was commissioned by Fair Finance Philippines (FFPh) through the Initiatives for Dialogue and Empowerment through Alternative Legal Services (IDEALS), Inc. to conduct a study, titled Implementing Sustainable Finance in Rural Banks in the Philippines and Indonesia.
This study recognizes the vital role of rural banks in promoting financial inclusion, improving community welfare, and driving rural economic growth. It offers valuable insights into best practices and innovative approaches for implementing sustainable finance, which rural banks can adapt and scale up.
To present the findings of the study and to facilitate a meaningful discussion on the topic, the AIM JBF Center for SF hosted a webinar last December 5, 2024, that attracted 60 participants, including representatives from rural banks, academia, and civil society organizations.
Building upon the study findings, the panel discussion highlighted several key considerations. Capacity building emerged as a critical need to equip rural banks with the knowledge and tools to effectively integrate sustainable finance principles and align with global standards. While rural banks are well-positioned to support community projects and lead sustainability in rural economies, the panel emphasized the need for greater government support, stronger regulatory frameworks, and increased collaboration among rural banks to scale up their efforts. The discussion also focused on the importance of transparency and accountability in sustainability disclosures, as well as leveraging digitalization to advance sustainable finance initiatives.