Study Of Legal Obligations Of Green-credit On Chinese Commercial Banks

With the rapid development of the international green finance,green credit has becomean important means of environmental economic regulation.To some extent,the implementationof green credit policy urges commercial banks to fulfill social obligation on environment,bycontrolling the flow of credit funds,cuting off the funding of "non-green" businesses andprojects lifeline to achieve funds’ green allocation.But the "soft" effect of green credit policyresults in many difficulties in its implementation process.With the legalization of green credit proposed,legal obligations of green credit oncommercial banks also begins to be valued.Environmental externality theory,corporate socialresponsibility,environmental risk management theory explained the feasibility of legalobligations of green credit on commercial banks;seriousness of environmental problems,theurgency of national industrial structure adjustment,the reality of financial security andinternational competitiveness augmented of commercial banks needs commercial banks totake on legal obligations of green credit;strengthening will of national environmentalprotection,current practice and experience of green credit,provides a realistic feasibility forestablishing legal obligations of green credit on commercial banks.Currently there are many policy norms on green credit,but problems such as lackingclear setting of green credit in law, applicable standards unified,information-sharingmechanisms inadequate,lack mechanisms of oversight and accountability weakens the effectof the implementation of green credit.Learning from the successful experience ofInternational Green Credit Guide and U.S., Germany, Japan and other countries, China’s greencredit should be set in the law,and from four aspects that legislative path,modes norms,obligations framework and supporting measures to strengthen the commercial banks’ legalobligations of green credit.First,the integration path of legislation to establish the legalobligations of green credit on commercial banks is the optimum legislative path. Secondly, thenorm throughout the entire green credit legislation adopted the means of Promoted legislationbased,managed legislation supplemented,legal obligations of green credit as its mostimportant part, should be set in the form that combines the advocacy norms and peremptorynorms.Thirdly, the contents of the legal obligations of green credit on commercial banks,should include three mandatory obligations that careful examination before the loan,to takeinitiative to withdraw loan from the non-environmental ones,credit information disclosure, and two advocate obligations that dynamic monitoring obligations and informationsharing obligations.Finally, complete the supporting measures,specifically in fourareas,including the implementation of a unified standard,perfecting the incentives measuresand regulatory measures,defining the legal responsibility.Relying on enforcement forces fromthe Country and the national authority of the law,the legal obligations of green credit oncommercial banks can urge commercial banks to carry out the green credit consciously,trulyand effectively achieveing the environmental goal of green credit and legal obligations ofgreen credit.