A Research On Environmental Risk Management Of Chinese Commercial Banks In Green Credit Policy

For a long time, in order to develop social economy rapidly, China exploits resource and consumes energy overly. It leads to all kinds of ecological problems. The natural environment is getting worse and worse. At present, the primary task of economic development in China is to accelerate the transformation of the mode of economic development and promote and upgrade economic structure. The government calls for comprehensive utilization of laws, economic policy and advanced technology to solve environmental pollution as soon as possible. Green credit is an important representative of environment economy policy. It is an effective measure to limit those industries with high pollution, high energy consumption and overplus. It can improve energy conservation and emissions reduction. It can also promote transformation and upgrading of economic structure.With the improvement of the market economy, financial industry plays a more and more important role in the economic society. As an intermediary of market financing, commercial bank can influence the behavior of the enterprises which accept its service. Commercial bank requires environmental protection in its financial services and guides the enterprises to fulfill the social responsibility of environmental protection. Now, government increases the remediation in environmental protection and perfects laws, regulations and economic policy. From bank’s point of view, environmental risk has become one of the important risks in the credit business of commercial banks. How to reduce the chance that the credit funds invest in the enterprises with high pollution, high energy consumption and potential environmental risk and how to reduce the risk of the banks is the current major problem faced by commercial banks.In this paper, the environmental risk management of green credit is the research object. It explains why it is necessity for commercial bank to implement environmental risk management of green credit. This paper also analyzes the current situation and existing problems of green credit risk management in domestic commercial banks. And then, it proposes some ideas and countermeasures to promote the development of green credit risk management of commercial banks in China, according to the advanced experience of developed countries and the reality of our national condition.