The Research On The Innovation Of The Green Credit Products In China

The International Banking Industry launched the equator principles at the beginning ofthe twenty-first Century, it requires the banking institutions follow the rules of the equatorprinciples when they engaged in project financing, evaluate the environmental and socialimpacts the project is likely to produce, use the function of financial resource allocation tomake sure the harmonious development of society, environment and resources, promotefinancial institution transform their consciousness from ’maximize shareholder interests’ to’consider the multi-interest body’s need’, carry out varieties of green credit business andinnovation of green credit product. In order to promote the development of green creditbusiness in China, the State Environmental Protection Administration, People’s Bank of Chinaand China Banking Regulatory Commission jointly issued "The implementation ofenvironmental policies and regulations to prevent credit risks" in2007. At the same time,China introduced the innovation ideas of the equator principles to promote the innovation ofgreen credit product.This paper describes the current situation of the innovation of the green credit productsin China, analysis by the constraint induced financial innovation theory, analysis of structurechange, financial intermediary innovation theory, find out some problems such as lessinvestment field, unbalanced development between commercial banks, less proportion ofcredit and single business type. In order to promote the innovation of green credit product, weneed to improve the mechanism of risk sharing of the innovation of green credit product,solve the problem of policy making, information sharing, and resource construction ofbanking industry. Based on expound the success experience of foreign policies and innovationof green credit product, compare the differences between domestic and foreign over theinnovation of green credit product, technical support and conformity resources of commercialbank. In view of the current existence of green credit product innovation, put forward somesuggestions which is conducive to the innovation of green credit product, promote greencredit business play a positive role in our country’s development.