Further, central banks are also incorporating adverse weather-related scenarios in their stress testing of banking sector to evaluate the resilience of financial system to adverse shocks. State Bank of Pakistan has also undertaken important initiatives under the umbrella of Green Banking to ingrain sustainability considerations in the financial sector.
SBP became a member of Sustainable Banking & Finance Network in 2015 and is leading the initiative of promoting sustainable banking. SBP has introduced Renewable Energy Financing Schemes both in conventional and Shariah compliant financing modes. The objective of the scheme is to finance clean and renewable energy projects to meet the growing electricity demand in the country.