A Study On Operating Mechanism Of Commercial Banks Performing Green Credit Policy

Since the 1990s, environmental pollution, resource depletion and ecological imbalances have become increasingly serious with China's rapid economic development. Facts have proved that it will not be effective to employ simple administration force or merely a means of enforcement in order to change the deteriorating environmental situation and realize the target of energy-saving emission reduction, but also need to be complemented by market-based instruments such as financial control. Therefore, it is of importance to study the operating mechanism and effect evaluation of commercial banks practicing the green credit policy.This paper attempts to make a systematic analysis from the aspects of the theoretical basis, practical necessity, the operating mechanism, effects of commercial banks practicing the green credit policy by applying combining methods of theoretical analysis and empirical analysis. Policy recommendations to facilitate commercial banks practicing the green credit policy efficiently are put forward through learning from foreign experiences.The basic sequence of the research is as follows:It points out that environmental risk management theory, corporate social responsibility theory and the Equator Principles are theoretical basis of commercial banks performing green credit policy on the basis of introducing green credit general principles. The deteriorating trend of environmental pollution as well as sustainable development policies are the reality necessities of commercial banks practicing the green credit policy.Government's existing policies and systems related to commercial banks shows that the operating mechanism of commercial banks practicing the green credit policy includes the mechanism of credit access, credit management mechanism, the risk of early-warning mechanism as well as the exit mechanism of the dynamic system.Empirical analysis of commercial banks practicing the green credit policy shows that although green credit business of commercial banks has made some progress, but there are some serious problems such as lack of access to relevant standards of credit access, imperfect information of communication mechanism, lack of supervision, restraint and incentive mechanism.Stones from other hills may serve to polish jade. Sustainable finance and green credit practical experiences of the United States, Britain and Canada tells us that commercial banks should promote environmental responsibility system, standard bank credit system, establish effective information communication mechanism and incentive mechanism, innovate bank mechanism and set up the concept of sustainable financial so as to carry out an effective green credit system.In view of the issues of the operating mechanism of commercial banks performing green credit policy, some specific recommendations and measures are put forward such as setting up a sound system of laws and regulations, enhancing operation of the credit access mechanism, improving information communication mechanism, building a green credit monitoring mechanism, incentive mechanism and social responsibility assessment mechanism to perfect the operating mechanism of commercial banks performing green credit policy and standardize green credit implementation.