Risk Management Study On Green Credit Business Of CITIC Bank C Branch

Since the Reform and Opening-up,countries around the world have been focusing on economic development.While achieving great achievements,it has also caused pollution and damage to the environment.In recent years,regulators have introduced a series of policies that require financial institutions to increase loans to green environmental protection companies and reduce financing for "two high and one leftover" enterprises to slow their development and reduce environmental pollution.As a result,it provides guidance for the development of green credit in China and promotes the sustainable development and industrial optimization of China’s economy.In the development of green economy,financial institutions play a leading role.As the core of China’s financial system,commercial banks play a pivotal role in promoting the development of green economy.Therefore,practical measures must be taken.In the development of green credit business,commercial banks have their own characteristics,which can not only improve their own brand image,but also take advantage of local advantages to provide support to local enterprises and promote the sustainable development of local economy.For commercial banks,what cannot be neglected is the safety of capital in carrying out credit business.As part of the asset business of commercial banks,the essential attribute of risk management of Green Credit has not disappeared,and it is even different from the risk management of traditional credit,which is a technically demanding field.Therefore,credit risk is a priority issue that commercial banks must consider when carrying out green credit business.This article first describes the theory of Green Credit and commercial banks’ credit risk management,and then analyzes the current situation of green credit and the practice of green credit risk control of major domestic commercial banks through comparison.Focusing on the basic situation of CITIC Bank Branch C and the policy background of implementing Green Credit,it further introduces the concept,institutional situation,product system and scale of green credit of CITIC Bank Branch C.It explores the reasons for developing Green Credit business of CITIC Bank Branch C,identifies the risks arising from various aspects of the current placement of Green Credit,further analyzes the causes of the formation of these risks,and finally concludes by suggesting the management that should be optimized in the pre-lending review,control and post-lending management of green credit projects.Combined with the actual situation,countermeasures are proposed for CITIC Bank Branch C to carry out green credit to avoid environmental risks,and control measures to avoid and control Green Credit risks are derived,including improving and perfecting green credit audit information,enhancing environmental awareness and social responsibility,improving environmental information early warning mechanism,optimizing internal green credit policy system,and strengthening special incentives and talent team construction.It is hoped that through the research of this article,it expected to enlighten the Green Credit business of other commercial banks in China.