A Comparative Study Of Green Credit Between Commercial Banks And Major Developed Countries In China

With the intensification of the global environment problem, countries all over the world attached much more attention to sustainable development,so was born the Green Credit. Green credit was developed earlier in foreign commercial banks, the federal republic of Germany established the world’s first environmental protection bank in 1974, named "ecological bank", which was responsible for providing preferential loans to environment projects. "Equator principles" had already become the international operational guideline for banks to carry out the practice of green credit, so far, 83 financial institutions from 36 countries and regions have already joined the equator principles. Green credit has become an international trend, supported and appreciated by more and more financial institutions.Commercial Banks of China began green credit business in July 2007, when the “Guidelines of implementing environmental policies and regulations to prevent credit risk” was jointly issued by the environmental protection administration, the people’s bank of China and China banking regulatory commission. Currently, the Industrial Bank is the only domestic bank to join the equator principles on October 31, 2008. The party’s fifth Plenary Session of the 18 th CPC Central Committee set green development as one of the five big ideas to guide the future development of our country, green credit is also the content of supply side structural reform. At present, our country’s economy society began to enter into a comprehensive green new normal. Developing green credit business, guiding capital flow into green programs and strictly controlling those heavily polluted industry’s loans is commercial banks’ important choice to comply with the government’s policy and make its own sustainable development.Under the background of significant difference between Chinese and foreign commercial banks’ green credit business, comparing and analyzing the implementation of foreign commercial banks’ green credit business can help us find out the problems of our own commercial banks and absorb the valuable experience from them to carry out green credit.This paper compared 16 listed Banks of China with those banks of developed countries, such as bank of America and HSBC, using descriptive summarize and comparative analysis methods. It compared them from three aspects: green credit system, green credit risk assessment and management and green credit products,With some economic theory, this paper analyzed our country’s commercial banks’ current existing problems in the implementation of green credit business, and puts forward strategic choices of our home commercial banks’ green credit business in future.