The Analysis Of The Effects And Problems Of Green Credit In Shenzhen

In the 30 years of reform and opening up, China's rapid economic growth was accompanied by the excessive consumption of energy and increased environmental pollution.. Taking the road of recycling development of the economy and sustainable development has become the inevitable choice of china. Therefore, the state and the general public have become increasingly demanding on business environment. So, enterprises have to bear more and more environmental pressure. This also means that commercial banks will face increasing environmental risk. Because the high energy consuming, heavy polluting, capacity exceeding enterprises are has more chance to be punished by the government. And once there comes executive order to close or suspend production for rectification, the commercial banks will have difficult in recovering loans, and the debt may be difficult to achieve. This situation is undoubtedly a high threat to the commercial banks.In order to prevent the environmental credit risk promote energy conservation, on July 12, 2007, the former State Environmental Protection Administration jointly People's Bank of China Banking Regulatory Commission jointly issued "on the implementation of environmental policies and regulations to prevent the environmental credit risk " , strongly pushing out the green credit policy. The main content of the green credit is that environmental protection department should regularly submitted environmental illegal information of the enterprises to the People's Bank credit system and the commercial banks, should take the corporate environmental compliance as an important index of the situation in the approval process credit operations. On energy saving and environmental protection industries or enterprises, increased support should be given. The financial support should focus on the national key projects, energy conservation, new energy, renewable energy and natural resources, water pollution control projects, the environmental protection industry and other major projects. While on the "two high and One remaining" projects , which are in the restricted and forbidden class, strict credit limits and actively launching policy is necessary..In this paper, on the special background of Shenzhen, based on data from the People's Bank branch in Shenzhen , , the effect of the green credit in Shenzhen will be analyzed. Firstly, there will be given a brief introduction on the implementing background of the green credit in Shenzhen. Secondly, I will explain the concrete measures have taken by commercial bank in Shenzhen City to implement the green credit. Finally, on the simple analysis data of a little part of the customers who's been given financial support by the Shenzhen Branch of the Bank of China, preliminary understanding of the implementation of the green credit in Shenzhen City will be written. The results showed that the implementation of the green credit will bring many aspects to the improvement of Shenzhen. For example, it can alleviate the strain on the resources of Shenzhen City and improve the status of environmental degradation, promote Shenzhen industrial upgrading, and so on.It's not difficult to see that, since the introduction of the green credit policy, it has achieved some remarkable results. But the green credit in china has just started and there are many problems, such as the contradiction between the concentrated credit resources and dispersive pollution sources, technical defects, inadequate policies and incentives, lack of communication between banks environmental protection departments and so on. Some of these problems can be overcome, but there are some problems difficult to solve in a short time, such as dispersed sources of pollution is caused by the current stage of China's economic development, by this situation which is difficult to eradicate in not to mention 10 years, and even in 20 years.However, the green credit is not only the international development trend but also the inevitable choice the development of China's financial industry. We can not escape from the difficulties ,but we can try to overcome them. In view of the course of the difficulties and problems China is facing now in implementing the green credit, here present the following policy recommendations: the establishment of sound standards system, full use of the People's Bank credit information management system, establish and improve the environmental and social risk management system, accelerate the pace of the green loan innovation and strengthen professional training. I believe that if we work hard at the few aspects above green credit will greatly reduce the environmental credit risk significantly reduce energy consumption and pollutant emissions in the near future. It can promote the recycling economy construction in China, while improving the performance of financial institutions..