Finance Sector Group. Lotte Schou-Zibell Sustainable Development and Climate Change Department ADB 27 March 2019

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1 Finance Sector Group Lotte Schou-Zibell Sustainable Development and Climate Change Department ADB 27 March 2019

2 Overview Finance sector support to Strategy 2030 and the Sustainable Development Goals Finance sector portfolio Key areas of focus, learning and opportunities

3 Finance Sector s Contribution to Strategy 2030 Addressing Remaining Poverty and Reducing Inequalities Access to affordable, safe and well-regulated innovative financial products and services, financial and digital literacy Accelerating Progress in Gender Equality Mainstreaming gender in financial inclusion for women Making Cities More Livable Innovative financing for urban development plans by embedding disaster insurance and FinTech Promoting Rural Development and Food Security Investments in rural infrastructure and high-level technology for creating incomegenerating and financial risk protection solutions Strengthening Governance and Institutional Capacity Government capacity to manage crisis Improving financial regulations Tackling Climate Change, Building Disaster Resilience Developing capital market and insurance for low carbon projects and green infrastructure finance Fostering Regional Cooperation and Integration Enhancing funding and financing of cross-border infrastructure investments, deepening financial markets, regional risk pooling, and strengthening financial institutions and regulations

4 Finance Sector Supports Sustainable Development Goals Finance sector contributes to achieving 11 of 17 SDGs Poverty, Hunger, Health, Education, Gender, Energy, Infrastructure, Cities, Consumption, Climate Change, and Partnership

5 Total Committed Lending Finance Sector Loan Portfolio 2018 $2.0 billion $1.0 billion: Nonsovereign Lending $1.0 billion: Sovereign Lending $110 million: Climate Financing* 2,764 1,323 1,398 2,259 1,610 2, Public Sector Private Sector *Finance sector operations contribution to ADB s Corporate Climate Finance Goal 5

6 Finance Sector Project Pipeline by Key Areas of Focus Infrastructure Finance Inclusive Finance 1,719 11% 48% 1,458 16% 46% Finance Sector Development Note: Covers sovereign operations only 41% 37%

7 Finance Sector Project Pipeline By Sovereign and nonsovereign operations 4,512 ($ million) Nonsovereign 1,335 (30%) Sovereign 3,177 (70%) 7

8 Finance Sector: Areas of Focus and Key Trends Key Areas of Focus Scaling-up ambition for climate change mitigation Key Trends Digital financial technologies Green finance Scale-up Support for Gender Equality Disaster insurance Sustainable, green and inclusive development 8

9 ADB Supports Innovation Through Pilot Projects Philippines: Cloud technology for Core Banking & Financial Inclusion Challenge Limited financial inclusion Solution Digital finance Only 3 out of 10 Filipinos have a bank account Lack of efficient technology infrastructure in rural and remote areas and archipelagos Higher costs of reaching and servicing clients for rural banks in high-risk frontier areas Offer Financial products and services Reach the underserved and unbanked people Provide personalized and efficient services Mitigate IT, strategic, and operational risks Reduce IT capital expenses ADB has supported Cantilan Bank become the first financial institution regulated by the Central Bank of the Philippines to leverage cloud technology to deliver financial services.

10 ADB Supports Innovation Through Pilot Projects Bangladesh: Weather Index-Based Crop Insurance Parametric insurance products developed Provides payouts when pre agreed triggers linked to the parameters of a risk (excess rainfall or drought) are fulfilled Indices developed using weather data to determine trigger points and approximation of incurred loss for payout Twenty automatic weather stations were installed to ensure timely claims payouts Mobile banking facility was used for claims settlements This was a $2 million grant funded by JFPR PARAMETRIC INDEX 10

11 2019 Learning and Development Key Knowledge Events 3rd Asia Finance Forum Knowledge products Islamic finance Insurance Digital financial services Partnerships Knowledge partnerships Financing partnerships Skill Development Training, mentoring Staff sharing Expert pool: digital finance Workshops Blockchain and cryptocurrency Green finance Basel Accord FSG Community Site Enhance information sharing and collaboration with the FSG

12 We look forward to doing business with you! Lotte Schou-Zibell Chief of Finance Sector Group Arup Chatterjee Principal Financial Sector Specialist