Research On Green Credit Business Credit Management Of Bank Of China Zhangye Branch

As the global warming and the environment problem being increasingly serious, the survival and development of human beings are under grave threat. In our country, the implementation of CDM projects is the important measure to slow global warming and develop the low-carbon economy.As part of the green credit, CDM project loans are helpful to promote clean development mechanism. However, CDM project management is particular, difficult and risky.With historical particularity Gansu Zhangye Xiaogushan hydropower CDM project is China’s first hydropower CDM project which has successful certificational and transferential CERs. Based on the project, the research of green credit business loan management in bank of China, Zhangye branch has the vital significance.Firstly, this paper combines basic theory, including the externality theory, Pigu tax and property rights theory. Secondly, to introduce the case of Gansu Zhangye Xiaogushan hydropower CDM project loans, the article starts with three aspects: the green credit business development of The Bank of China, Zhangye branch, the project activities and the CDM project loans. Thirdly, with the analysis of the implementation of loan management process and loan management mechanism, this paper proposes several problems in the credit management and sum up the successful experiences. Finally, this paper makes some conclusions and policy recommendations based on the exsiting problems.The research show that The Bank of China, Zhangye branch making loans on Xiaogushan hydropower CDM project is in line with the environmental policy, and the CERs revenue is helpful to realize additional capital subsidy to the project. In management of CDM project loan, the bank should strengthen the green credit mechanism, develop new CDM credit loan model, optimize loan management, pioneer diversified carbon financial services and products and conduct CDM project loan risk control system.