Who and where are the Equator Banks? - IILJ
Who and where are the Equator Banks? - IILJ
Who and where are the Equator Banks? - IILJ
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There was general concern among <strong>the</strong> <strong>Equator</strong> <strong>Banks</strong>, not only about <strong>the</strong><br />
review process within <strong>the</strong> IFC, but also at <strong>the</strong> lack of information provided<br />
to <strong>the</strong>m to assess <strong>the</strong> merits of <strong>the</strong> proposed reforms.<br />
The revised policies will, when finalised, probably require <strong>the</strong> revision of<br />
<strong>the</strong> Principles <strong>and</strong> financial institutions expressed <strong>the</strong> need for <strong>the</strong>ir own<br />
consultation process with <strong>the</strong>ir stakeholders on <strong>the</strong> revised Principles before<br />
<strong>the</strong> new Principles <strong>are</strong> implemented.<br />
It is quite possible that <strong>the</strong> IFC review will cause a schism among <strong>the</strong><br />
<strong>Equator</strong> <strong>Banks</strong>. While some <strong>Equator</strong> <strong>Banks</strong> may accept <strong>the</strong> new<br />
performance st<strong>and</strong>ards, particularly if <strong>the</strong> IFC takes on board <strong>the</strong> views of<br />
<strong>the</strong> <strong>Equator</strong> <strong>Banks</strong>’ lobby, o<strong>the</strong>r <strong>Equator</strong> <strong>Banks</strong> may seek to draw <strong>the</strong> line at<br />
<strong>the</strong> IFC Safeguard Policies as <strong>the</strong>y existed at <strong>the</strong> date on which <strong>the</strong> bank<br />
adopted <strong>the</strong> Principles. The differences <strong>and</strong> difficulties that arose in<br />
negotiating <strong>and</strong> drafting <strong>the</strong> Principles in 2003 no doubt will re-emerge<br />
unless consensus amongst <strong>the</strong> <strong>Equator</strong> <strong>Banks</strong> is obtained to <strong>the</strong> proposed<br />
changes to policy. Avoidance of schism is a challenge that <strong>the</strong> <strong>Equator</strong><br />
<strong>Banks</strong> have faced since 2003 but it will become more daunting as <strong>the</strong>y go<br />
forward.<br />
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