A Study On Low Carbon Finance Business Development Strategy Of China's Commercial Banking

A series of problems caused by the threat of global climate change, impact of the international financial crisis, resources and environment constraints of rapid economic development make the transformation of economic development mode urgent. Low carbon economy and low carbon civilization is an effective way to respond to climate change and realize economic and social sustainable development. The low carbon economy is endowed with great hope as "the fourth industrial revolution" leading global economic recovery, this provides a historical opportunity to China's transformation of economic mode and the development of low carbon financial, and in recent years international carbon financial market gained rapid development as the financial innovation mechanism in response to climate change just proves that. Banks as the mainstay of China's financial system should grasp the opportunity, comply with international and domestic economic development needs, develop low carbon financial innovatively and actively, which not only promote China's low carbon economic transformation but also open up new profit space for banks.This paper using theory and empirical research methods analyses detailed the strengths, weaknesses, opportunities and threats faced by commercial banks developing low carbon financial in China, and proposes a series of strategies and suggestions. Firstly, the paper expounds the development of foreign low carbon financial as our country research background and referenced experiences, and introduces the present situation of low carbon financial development in China. Secondly, analyses the strengths, weaknesses, opportunities and threats faced by commercial banks developing low carbon financial in China, in order to make good strategy choices which enhance strong points and avoid weaknesses. Thirdly, it puts forward some countermeasures of banks practicing low carbon finance, On the one hand is the bank itself efforts , on the other hand is external policy environment support .Banks should strengthen basic ability construction, including the establishment of bank governance structure and low carbon financial business policy, strengthening cooperation and study with the same trade, strengthening marketing etc. On how to innovate low carbon financial business , the paper gives some suggestions from low carbon credit, project financing, bank intermediary business and off-balance-sheet activities aspects. To improve the bank's risk prevention, some risk management suggestions are offered for the CDM project risk, policy risk, market risk and carbon finance trading risks. Low carbon banking business need external policy environment support, the paper proposes some strategies,including enhancing incentive and supervision function of low carbon financial policy, speeding up the construction of carbon market , perfecting the supplementary policies and measures to promote low carbon finance development, establishing and perfecting the laws and regulations related low carbon finance.