SINGAPORE: Singapore's central bank has reminded banks to identify, assess and manage material environmental risks arising from their activities and exposures, including those linked to pollution and deforestation.
Banks are expected to consider relevant information released by the National Environment Agency under the Transboundary Haze Pollution Act, the Monetary Authority of Singapore (MAS) said in a statement on Wednesday (Oct 28).
Where customers may be linked to activities contributing to haze, banks should engage them to understand their involvement and assess whether adequate measures are in place to prevent, detect and stop fires, MAS said.
Banks should take appropriate steps to mitigate heightened environmental risks, including imposing conditions, reviewing financing terms, limiting further exposure or reassessing customer relationships, it added.
"Clear breaches of environmental laws would warrant stronger measures, including limiting exposures or exiting the relationship," MAS said.
It said it supported local banks' clear stance against burning practices and noted that they would take strong action where warranted.
Singapore experienced prolonged haze in recent weeks. The National Environment Agency has issued Preventive Measure Notices under the Transboundary Haze Pollution Act to companies that may have contributed to the haze. - Xinhua
