The Research On Commercial Banks’ Motivation Of The Implementation Of The Equator Principles

The implementation of the Equator Principles can benefit the commercial banks’fulfillment of corporate social responsibility, the improvement of the banks’ reputation, theenhancement of the risk prevention capacity and the improvement of the operating ability,which represents the future direction of the commercial banks how to enhance the CSR andconduct a comprehensive risk control system. However, those China commercial bankshaven’t recognized the importance of the responsibility for the environment and the society.And almost have no idea about the EPs. Because of those behaviors of ignoring theresponsibility, those Chinese banks which have overseas business loss lot. And those criticsfrom the NGOs and other countries come across. For those reasons, banks in China shouldaccept the EPs. Besides, the domestic environment problems are not optimistic, it needs the EPs tohelp achieve sustainable development of society. Therefore, it is necessary to study themotivation of the commercial banks’ accepting behavior, and find out the motivate factors.And then, based those motivations give some advises for promoting the EPs.This paper reviews the theory foundation (the theory of corporate social responsibility andenvironmental risk management theory). Based on these theories, studies those successfulEPFIs outboard, finds out the effects of the EPs. And then uses the data of Xing Ye Bank toestablish the econometric to test the effect of the EPs. Then, establish three game models bysetting different conditions–in a completely rational matrix condition, in the limitedrationality condition and with the strong ability to learn and in the limited rationalitycondition with the weak ability to learn. Use these to identify the behavior of commercialbanks in the different conditions and find the motivation source under different conditions.The conclusions as followed: firstly, by the measurement model analysis find that theimplementation of the Equator Principles can benefit commercial banks, and the effect ispositive. Secondly, for the three different types of banking industry accomplished three gamemodels, and finds that those Commercial Banks’ accepting behavior is driven by the pursuit oftheir own profits as well as the outside pressure. It’s the demand of their self-interest. And itrelated to the domestic industry conditions, environmental and social conditions,environmental degradation harm. And those banks which have different rationality anddecision-making ability have different choices. Finally, based on the motivate factor, give theadvices to help the implementation of the equator principles.