Research On Green Credit Risk Assessment System Of H Bank

Since the mid-nineteenth century,the global temperature has risen by about 1.2℃.Global warming has aggravated the instability of the climate system,so that extreme weather has occurred frequently,posing a huge threat to human survival.Sustainable development is imperative and is the long-term way to success for human development.In order to achieve the goal,"carbon peaks,carbon neutrality" was written into the work report of Chinese government for the first time at the two sessions in March 2021.In order to make financial institutions better cooperate to accomplish this goal,the Central bank has identified green finance as a key task during the "14th Five-Year Plan" period.Commercial banks are the main providers of green credit and will play an indispensable role in the country’s sustainable development.In this dissertation,the concepts of green finance and green credit are sorted out,and combines the practical experience of the first batch of banks that practice sustainable development risks/green credit at home and abroad to determine the scope of the assessment coverage and conduct classification of industries,so as to set the corresponding indicators and scoring mechanism.Taking H Bank as an example,basing on the group’s sustainable development risk requirements,combining with local regulatory requirements,and in accordance with the requirements of the green credit policy,it establishes an indicator system related to environmental factors and classifies them.A green credit risk assessment model based on environmental factors is established by using AHP model which takes into account the different importance of the indicators.By combining comprehensive credit risk assessment,it forms a green credit risk assessment system.The system can effectively make up the limitation of traditional financial assessment,and these customers who do not comply with the legal requirements or do not meet the bank’s green credit policy requirements cannot obtain loans,which further improves the accuracy and scientificity of the pre-lending assessment of green credit business,and provides an objective judgment basis for decision makers,so as to better manage green credit risk and improve the quality of green credit.