FINANCIAL STABILITY
Sustainable Finance
Regulation and Supervision
Integration of social considerations into the financial system
Sustainable financing is the integration of environmental, social and governance (ESG) standards into the processes of financial decision-making. The Report on Social Considerations is a description of the integration of the social standards into the financial system of Armenia. The report highlights various social issues present in financial sector, emphasizing aspects such as diversity, financial inclusion, and social investments. It consists of various recommendations that demonstrate how to address existing challenges within the financial system.
Climate Risk Reporting Framework
Climate risk Reporting & Disclosure Framework is a critical element under the EMBED Sustainable Finance Pillar of the sustainable finance roadmap in the context of supervisory guidance to financial market participants on ESG risk integration and management. CBA is launching this Sustainable Finance Reporting & Disclosure Framework to guide commercial banks report and disclose climate-related information in a relevant, useful, consistent and comparable manner.
Climate Stress Testing Framework
The Central Bank of Armenia (CBA) develops Climate Risk Stress Testing (CRST) tool to assess the resilience of financial institutions against climate-related risks. These risks, including physical threats like extreme weather events and transition risks, such as policy changes, can significantly impact businesses, households, and financial markets. CRST helps institutions understand potential financial losses, identify vulnerabilities, and adjust their strategies accordingly. By integrating economic, environmental, and financial data, stress testing ensures better preparedness for a sustainable future.