The importance of financial education, its role as a complement to financial inclusion and consumer protection policies, and its contribution to financial stability has led many countries to develop a national financial education strategy (NFES). Financial education is seen as a tool to increase financial literacy and AFI defines financial education as “a process of providing people with the knowledge, skills, attitude, and exposure through access to relevant objective information, and training to enable them to make informed financial decisions and take actions appropriate to their circumstances.”

• Angola – Banco Nacional de Angola Programa de Educação Financeira em Angola (2017)
• Armenia – Armenia Roadmap National Strategy for Financial Education (2019)
• Armenia – Financial Capability Barometer (2017)
• Armenia – National Financial Literacy Strategy (2014)
• Bhutan – Bhutan National Financial Literacy Strategy (2018-2023)
• Brazil – Brazil National Strategy for Financial Education (2010)
• Chile – Estrategia Nacional de Educación Financiera (2017)
• Colombia – Estrategia nacional de educación económica y financiera (2017)
• Dominican Republic – Plan Estratégico de Educacion de Educación Económica y Financiera (ENEEF) (2017)
• El Salvador – Estrategia Nacional de Educación Económica y Financiera (2022)
• Fiji – National Financial Literact Strategy (2013-2015)
• Haiti – Plan National d’Éducation Financière Haiti (2020-2025)
• Indonesia – Strategi Nasional Literasi Keuangan Indonesia (SNLKI) (Revisit 2017)
• Jordan – National Financial and Social Education Programme (2015-2021)
• Malawi – National Financial Literacy Strategy (2020)
• Malaysia – National Strategy for Financial Literacy (2019-2023)
• Mexico – Estrategia Nacional de Educacion Financiera (2017)
• Morocco – Plan stratégique de la Fondation marocaine pour l’éducation financière (2019-2023)
• Nepal – Financial Literacy Framework of Nepla Rastra Bank (2022)
• Nigeria – National Financial Literacy Framework (2015)
• Pakistan – National Financial Literacy Programme for Youth (NFLP)
• Rwanda – National Financial Education Strategy (2013)
• Seychelles – Seychelles National Financial Education Strategy (2017-2020)
• Tanzania – National Financial Education Framework (2016-2020)
• Timor-Leste – Timor-Leste National Strategic Plan for Financial Literacy (2016-2020)
• Uganda – National Financial Education Strategy II (2019-2024)
• Uganda – Financial Capability Survey (2020)
• Zambia – Ministry of Finance Zambia enacted the National Strategy on Financial Education II (2019-2024)

Financial consumer protection refers to policies and practices designed to promote stable and inclusive financial services via two interconnected pillars: 1) empowering consumers to make more informed financial decisions via the provision of information, education and effective avenues for redress, and 2) protecting consumers via effective regulation, supervision and enforcement of market conduct by financial services providers.

• Angola – Law no. 15/03, of 22 July (2003)
• Armenia – CBA financial consumer protection legal acts.
• Bangladesh – BB Guidelines for Customer Services and Complaint Management (2014)
• Bhutan – Consumer Protection for Financial Services (CPFS) Rules and Regulations (2019)
• Bolivia – Regulation for Financial Consumer Protection (2013)
• Brazil – CMN Resolution 3694/09 (mandatory provisions); CMN Resolution 4539/16 (internal policy and procedures) (2016)
• Burundi – Consumer protection regulation (2019)
• Chile – Law No. 20,555: amendments to the Consumer Protection Act in relation to the protection of the consumer of financial services (2011)
• Colombia – Financial Services Consumer Protection, Law 1328 (2009)
• Costa Rica – Accord Number 10 / 07 (2007) “Regulations about the Information Disclosure and Advertisement of Financial Products and Services”; Law Number 7558 “Organic Law of the Costa Rican Central Bank”; Decree Number 35867-MEIC “Credit and Debit Card Regulations”; Accord Number 06 / 13 “Regulations for the Defense and Protection of the Insurance Consumers”.
• Dominican Republic – Regulations for User Protection of Financial Products and Services (first resolution of February 5, 2015)
• El Salvador – Ley de Proteccion al Consumidor Arts. 19 and 20 (2006)
• Fiji – Several Acts, including Consumer Credit (Amendment Act) (2006)
• Honduras – “Circular No. 022/2022 Rules for Strengthening Transparency, Financial Culture and Financial User Service in Supervised Institutions.”
  Circular No. 023/2022 Complementary Rules for Strengthening Transparency, Financial Culture, and Financial User Service.
• India – The Consumer Protection Act (1986)
• Indonesia – OJK Regulation on Consumer Protection in Financial Services Sector (2011)
• Liberia – Regulations on Consumer Protection and Market Conduct (2017)
• Malaysia – Policy Document on Fair Treatment of Financial Consumers (2019)
• Mauritius – Section 96A of the Banking Act 2004: protection of consumers of financial institutions. Sections 6 & 32 of the Financial Services Act 2007 for the protection of consumers of non banking financial products provisions (2004)
• Mexico – Law for the Protection of Financial Services Users; Law for the Transparency and Order of the Financial Services; Law for the Transparency and Promotion on Competition for Secured Loans (2012)
• Morocco – Banking law 31.08 about consumer protection measures includes provisions concerning the credit consummation and mortgage; Banking Law 103-12 enacted protective rules of the customers of credit institutions (2011)
• North Macedonia – The Law on Consumer Protection in Case of Consumer Loan Agreements; Law on Payment operations
• Palestine – PMA Fair Lending Instructions No. 4 (2009)
• Panama – Executive Decree 58 regulates consumer protection for Banks customers, and Law 42 regulates consumer protection for Non-Banks customers (2008)
• Paraguay – Consumer Protection Law number 1334 of 1998 covers all sectors of the economy, including the provision of financial products and services (1998)
• Peru – Financial Consumer Protection: preserving Consumer’s Authority’s technical character in legal interpretation (2017)
• Philippines – BSP Consumer Protection Guidelines for FinTech Stakeholders
• Rwanda – Financial Service Consumer Protection Law 2021
• South Africa – Numerous laws, including Consumer Protection Act (“CPA”)
• Sri Lanka – Directions, Determinations, and Circulars issued to Licensed Specialised Banks (2013)
• Tanzania – Bank of Tanzania Financial Consumer Protection Regulations 2019
• Thailand – BoT Financial Institution Business Act – Section 39 (2008)
• Uruguay – Book 4 in Central Bank of Uruguay RNRCSF on financial cost+B3:C33umer protection.

Regulators in the AFI network have begun responding, often with urgency, with strategies, policies and regulations to mitigate and build resilience to the impacts of climate change in their respective countries. There is an emerging trend in the network to link financial inclusion and climate change on a national strategic level, either in a national financial inclusion strategy (NFIS) of other financial sector strategies.

NFIS with green elements

• Argentina – National Financial Inclusion Strategy (2019)
• Bangladesh – National Financial Inclusion Strategy
• Egypt – National Financial Inclusion Strategic Plan (2016-2020)
• Jordan – National Financial Inclusion Strategy 2018-2020
• Philippines – National Financial Inclusion Strategy 2022-2028
• Rwanda – Rwanda Financial Inclusion Program (2015)
• Solomon Island – National Financial Inclusion Strategy 2021-2015
• Sao Tome and Principe – National Financial Inclusion Strategy 2021-2025

Other related financial sector strategies

• Bangladesh – Policy Guidelines for Green Banking (2011)
• Bangladesh – Bangladesh Bank Strategic Plan 2020-2024
• Bangladesh – Sustainable Finance Policy for Banks and Financial Institutions
• China – China’s National Plan on Implementation of the 2030 Agenda for Sustainable Development
• China – Guidelines for Establishing the Green Financial System
• China – China Green Bond Endorsed Project Catalogue (2015)
• China – Green Credit Guidelines
• Egypt – Guiding Principles on Sustainable Finance (2021)
• Egypt – CBE issues Binding Regulations to Enhance Sustainability and Sustainable Finance (2022)
• Ghana – Sustainable Banking Principles and Sector Guidance Notes
• Kenya – Guidance on Climate-related Risk Management (2021)
• Malaysia – Climate Change and Principle-based Taxonomy
• Mongolia – National Sustainable Finance Roadmap (2018)
• Mongolia – Mongolian Green Taxonomy
• Mongolia – National Green Development Policy (2014-2030)
• Morocco – National Roadmap for Aligning the Financial Sector with Sustainable Development (2016)
• Nigeria – Principles of Sustainable Banking (2012)
• Philippines – Sustainable Finance Framework (2020)
• Philippines – The Philippine Sustainable Finance Roadmap (2021)
• Philippines – The Philippine Sustainable Finance Guiding Principles (2021)
• Russia – Russian Green Finance Guidelines (2020)
• Rwanda – Rwanda Sustainable Finance Roadmap (2022)
• South Africa – South African Green Finance Taxonomy (2022)
• Sri Lanka – Roadmap for Sustainable Finance in Sri Lanka (2019)
• Thailand – Sustainable Banking Guidelines (2019)
• Thailand – Sustainable Finance Initiatives for Thailand
• Thailand – Sustainable Financing Framework (2020)

AFI’s 4P framework provides financial regulators with an intuitive was to consider the full range of policy actions they can take for inclusive green finance. All policies under the 4Ps either catalyze financial services for the private sector or use financial infrastructure to deploy finance for climate action.

Promotion

Promotion policies and initiatives prepare the private sector to offer financial services for green projects or related climate action activities to qualifies beneficiaries, for example, through awareness raising, information sharing, capacity building and data collection.

• Bangladesh – Quarterly Report on Green Banking Activities of Banks & Financial Institutions and Green Refinance Activities
• Bangladesh – Sustainability Ratings for Banks and Financial Institutions
• Bangladesh – Target and Achievement of Sustainable Finance and Green Finance
• Bhutan – National Stakeholder Capacity Building and Coordination Workshop for the upcoming Inclusive Green Finance Roadmap
• Cambodia – Encouraged commercial banks to repackage loans for populations affected by disasters
• Egypt – Conducted capacity building on sustainable finance
• Fiji – Fiji Financial Services Demand Side Survey 2020
• Morocco – Sensitization and awareness raising on green finance and climate risks in the financial sector
• Morocco – Finalizing regulatory directive on climate change-related risks
• Philippines – Knowledge sharing and awareness raising on sustainable finance
• Philippines – Conducts Banking Sector Outlook Survey (BOS) regularly
• Philippines – Research and data gathering on the impact of disasters to banking operations
• Thailand – Capacity building on ESG risks
• Thailand – Established a regulatory working group on sustainable finance comprised of the Ministry of Finance, the Securities and Exchange Commission, the Office of Insurance Commission and the Stock Exchange of Thailand

Provision

Provision policies help to ensure financial resources for green projects or related climate action activities are provided for qualified beneficiaries, whether through lending policies, refinancing or other financing schemes.

• Argentina – Relaxed conditions for loans packaged with climate insurance
• Armenia – Offered longer term financing to financial institutions to on-lend to MSMEs for products such as renewable energy
• Bangladesh – Introduced an annual green finance regulatory target equivalent to 5% of loans disbursed
• Bangladesh – Use of refinancing facilities to promote low carbon technologies
• Egypt – Required banks to allocate 20% of their portfolio to finance MSMEs including renewable energy and climate-resilient irrigation
• Egypt – The Central Bank of Egypt issued circular that provides a discounted rate for local bakeries to convert into the use of natural gas
• Egypt – The Central Bank of Egypt launched a EGY15million fund to support transition to the use of natural gas in the transport sector
• Eswatini – Offers financial services for climate-smart technologies to build resilience into agricultural supply chains
• Fiji – Issued a renewable energy loan ratio requirement equivalent to 2% of deposits and similar liabilities
• Jordan – Medium-Term Advances to Licensed Banks Program provides subsidized loans for critical development sectors including renewable energy and agriculture
• Morocco – Creation of Innov Investment Fund to support start-ups including renewable energy and cleantech
• Nepal – Directed all banks to dedicate 10% of their portfolio to green projects
• Nepal – Refinancing facilities for banks to offer subsidized loans for green technologies
• Nepal – Refinancing facilities for subsidized loans to rebuild from floods and fires, modelled on a program that supported post-earthquake recovery and reconstruction
• Pakistan – Financing scheme for Renewable Energy Projects from 2017 to mid-2019
• Peru – Rescheduling of retail loan payments in the event of a disaster mechanisms in place
• Philippines – Developed Agricultural Value Chain Financing Framework which allows banks to include disaster contingency mechanisms in place
• Philippines – Provision of temporary regulatory relief measures to banks affected by disasters
• Seychelles – Lower interest loans to MSMEs and to households through the Seychelles Energy Efficiency and Renewable Energy Program (SEEREP) SME loan scheme
• Sri Lanka – Moratoriums on loan repayments for affected borrowers by disasters
• Vanuatu – Assists businesses affected by Tropical Cyclone Pam through concessional lending to commercial banks at interest rates of one percent via the Vanuatu Disaster Reconstruction Credit Facility (2018)
• Vanuatu – Lowered the reserve requirement for commercial banks by two percentage points (from seven percent to five percent) to incentivize banks to lend to affected low-income households

Protection

Protection policies reduce financial risk by “socializing” potential losses through insurance, credit guarantees, socializing payments or other related risk-sharing mechanisms.

• Armenia – Establishment and supervision of the Agricultural Insurers’ National Agency (AINA), a public-private partnership for agriculture insurance market development
• Fiji – Use of mobile payments to disburse funds from its “Help for Homes Initiative” to people affected by Tropical Cyclone Winston
• Fiji – Allowed people to withdraw 20 percent from their retirement accounts to rebuild their homes
• Fiji – Fiji National Provident Fund provided relief assistance to members through its retirement fund
• Fiji – Established Fiji’s Natural Disaster Rehabilitation Facility, a climate resilience and adaptation program to replace damaged inventory; cover the loss of sales, including working capital; repair or replace damaged plants, equipment and machinery; restore damaged buildings, including resorts and hotels; and replace business vehicles for affected businesses and homeowners
• Ghana – Supported the development and initial implementation of the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) to increase the total amount of credit available to the agriculture and agribusiness sectors
• Morocco – Introduced climate multi-risk insurance products to protect investments in major cereal crops from climate-related damages, including drought, excess moisture, hail, frost, wind and sandstorms
• Nigeria – Established the Anchor Borrower’s Program to link smallholder farmers with large-scale processors to alleviate the impact of climate change including revenue index insurance
• Nigeria – Provides subsidies to incentivize bank lending to smallholder farmers facing climate risks
• Nigeria – Guaranteed 50 percent of the loss if a smallholder farmer cannot repay a loan through Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) through bundling climate risk insurance with subsidized lending and credit guarantees
• Philippines – Launched the Countryside Financial Institutions-Calamity Assistance Program in 2007 to help fund early recovery and reconstruction activities in areas affected by typhoons, disasters and other natural calamities
• Peru – Approved an innovative contingency insurance product for business interruption specifically designed for MSMEs and MFIs

Prevention

Prevention policies aim to avoid undesirable outcomes by lowering financial, social and environmental risks.

• Bangladesh – Introduced Environmental Risk Management (ERM) Guideline and Environmental Due Diligence Checklists (2011) to regulated financial institutions
• Brazil – Issued detailed guidelines to support the adoption of a Social-Environmental Responsibility Policy (Política de Responsabilidade Socioambiental, or PRSA) and made the application of these guidelines a condition for commercial banks to operate
• Ecuador – Issued Environmental Risk Management (ERM) Guidelines for Cooperative sector
• Nepal – Adopted Guidelines on Environmental and Social Risk Management for Banks and Financial Institutions (2018), which apply to bank lending for SME finance, commercial leasing, term finance and project finance
• Pakistan – Issued Green Banking Guidelines with a sizable section on ERM (2017) that offers guidance to banks on developing their own green financing products and services
• Paraguay – Flexible Guide for the Management of Environmental and Social Risks (2018) that encourages including non-financial risk in credit decisions
• Philippines – Environmental and Social Risk Management Framework (2021)