KUALA LUMPUR: Bank Negara Malaysia expects at least half of new financing by banks to be aligned with climate-supporting or energy transitioning activities, as set in the Malaysia Financial Sector Blueprint 2022-2026, said governor Datuk Abdul Rasheed Abdul Ghaffour.
"BNM has begun undertaking a comprehensive review of our regulations to ensure climate risk is appropriately accounted for and well-integrated into our regulatory framework,” he said in his keynote address at the biannual JC3 Journey to Zero Conference here today. "We recognise the challenges that financial institutions may face in balancing these outcomes. Concentration risks could, for example, increase from green and transition funding, and financial institutions need to properly understand and manage such risks,” he added.