Analysis And Management Of The Credit Exposure Of Commercial Banks CDM Projects

CDM projects is one of the three emission reduction for the fulfillment mechanism which developed by the Kyoto protocol, and also one of the only fulfillment mechanism which developing countries can participate in. China is the biggest developing country which emission reduction potential is enormous. And also China is high demand for CDM projects. Therefore, commercial banks will be involved in a lot of CDM project financing. But, CDM projects is extremely complex, commercial banks need to face many new problems and new challenges.Based on the specific case of XiaoGuShan CDM project, this paper identify the credit loan risk of this project, analyses the credit risk, and sum up the credit risk points of CDM projects. Then, this paper puts forward the key point of the commercial bank loans for CDM project. Based on the general method of credit risk assessment made by the commercial bank, combined the characteristics of the CDM project, this paper estimate credit risk of XiaoGuShan CDM project. Using a quantitative method, this paper makes use of sensitivity analysis for the CDM project which making a more comprehensive consideration of risk control. Finally, in the summary of the practical experience made by the commercial banks, this article put forward some suggestions for improvement for the risk management of XiaoGuShan CDM project. This paper put forward some suggestions for improvement for commercial bank in the loan of CDM project ultimately.