Research On Environmental Risk Management Of GS Bank's Credit Business

For a long time,the progress of human society and the development of the economy have been closely related to the natural environment on which we depend.With the great richness of material life and the advancement of science and technology,the natural ecology we live in should flourish with it.However,the reality is that our living environment is deteriorating,which has affected the sustainable development of the economy and human quality of life.In recent years,the development of a green economy and the building of an ecological civilization have become issues of general concern in the world today.Under such a large environment,China has also paid more and more attention to various ecological and environmental problems brought about by excessive consumption of natural resources for years of rapid economic development.As the core of the modern economy,finance plays a huge economic resource under the market economic system and plays an important role in promoting ecological environmental protection and accelerating the transformation of economic development mode.In recent years,with the deterioration of the ecological environment,the government and society have begun to reflect on the environmental problems.It is found that there are many polluting enterprises in the society that cause serious damage to the ecological environment,and their existence and pollution projects Smooth operations are inseparable from banks that issue loans to them.Therefore,strengthening the management and regulation of serious pollution,potential risks and environmentally sensitive projects in the banking industry is a measure that countries must take.As an important economic tool,green credit policy is a market-oriented environmental protection measure commonly used by the international community.Since China clearly put forward the practice of green credit in 2007,it has been continuously absorbing the mature development experience from the international community.The “green credit” policy introduced by the government is a policy proposed from the financial level to promote the green allocation of credit funds.In this context,China's own green credit system rules and operational procedures are gradually improving.The environmental risk in this paper refers to the possibility that the loan enterprise or project will stop the project due to environmental non-compliance,and thus cause direct asset loss,economic punishment and reputation loss to the bank.In order to avoid unnecessary losses caused by environmental risks,China's commercial banks should build an active and effective green credit management mechanism to improve the level of environmental risk management.Based on the perspective of green credit,this paper takes environmental risk management conducted by GS Bank in the process of implementing green credit as the research object.Based on the related concepts and theories of green credit and environmental risk management,this paper compares and draws on the development of green credit and environment by foreign commercial banks.The status quo and experience of risk management,through the analysis of relevant cases of GS Bank's implementation of green credit,to find out issues related to environmental risk management,such as information asymmetry of pre-lending assessment,assessment of environmental and social risks after loan and Insufficient monitoring,and the internal environmental risk assessment system of the bank is not perfect,no special environmental risk management department has been set up,and lack of specific and effective environmental risk management practice guidelines.Furthermore,it proposes corresponding countermeasures and suggestions for GS Bank to strengthen and improve the environmental risk management system,such as establishing an effective communication mechanism between the government,enterprises and banks,improving the internal environmental risk assessment system,establishing a special environmental risk management department,and actively exploring the operational guidelines for environmental risk management that suits them.Finally,the research content of this paper is summarized.The research in this paper has certain practical significance and reference value for how other commercial banks can better carry out environmental risk management in the process of implementing green credit.