A Study On The Support Of Green Credit In Commercial Banks Of China

With the increasing of global environmental problems,countries all over the world have paid more and more attention to sustainable development.Many countries are exploring new financial tools to solve environmental problems.Enterprises cannot develop without money,and bank loans are one of the most important financing methods in China's financial system,playing an important role in controlling the flow of funds and promoting the development of industries.Green credit,a counterpart of green finance in China,is introduced in recent years for Chinese commercial Banks to channel money into energy efficiency and low-carbon industries.By guiding money flowing into the energy conservation,environmental protection and national strategic emerging industry,commercial banks would make a great significant contribution to the “green development” of China.Meanwhile the Green credit would reallocate the factors of production in all industrial sectors in our economy.Therefore,speeding up the development pace of Green credit is crucial important to promote our economic growing effectively and efficiently.On the basis of fully combing the domestic and foreign research results,this paper firstly defined the concept and characteristics of Green credit in the commercial banks.After that,three theories---externality and market failure theory,sustainable development theory and the commercial bank risk management theory are introduced as the theoretical basis of this paper.Futhermore,the drivers of commercial banks carring out Green credit policy have been disscussed from three aspects.The transforming and upgrading of industrial structure,the improvement of social benefits and commercial bank its benefit would be the main driving forces.Then the paper shows the present situation of Green credit in China's commercial banks from macro and micro level.Currently,many problems are existing in both external environment and commercial banks itself,which hindered the development process of Green credit,with the imperfection of related supportive systems and the lack of government incentive policy been the foremost.Subsequently the foreign experience of developing Green credit is introduced and analyzed from three typical cases----the case of Barclays bank,the case of Standard Chartered bank and the ABN AMRO's case.Through the contrast of the foreign commercial banks and China banks,many successful experience of foreign banks have been learnt.Finally,the paper puts forward some countermeasures and suggestions from the aspects of improving the policy environment and increasing the ability of commercial banks.