Research On Socgen's Green Credit Risk Management

Sustainable development as the focus of stable development of the country,and increase efforts to promote the implementation of the green economy.Green credit was created with the aim of providing credit support to green enterprises to better control environmental pollution with financial support.Unlike traditional commercial bank credit,green credit focuses on environmental protection and its social responsibility,as well as on the profitability of loans,which can lead to different risks for banks.Green credit develops relatively late in our country,the constitution is not enough,in the face of the risk,many problems appear.Therefore,finding effective risk management methods is the key to the development of green credit.Starting from the root of green credit,we should grasp the basic points and emphases of green credit,strengthen the management of green credit according to the development of national economy and the requirements of national policy,optimize the credit environment of our banking industry,and promote the stable development of our banking industry.This paper selects Industrial Bank to carry on the case analysis,studies the green credit risk management process from three links before,during and after the loan,and on the basis of the existing theoretical research,looks for the problems that the bank appears in the green credit risk management.On the basis of this research,this paper summarizes three problems that green credit risk management generally faces,followed by green credit pre-loan project investigation Insufficient,insufficient project evaluation ability,lack of standard green credit evaluation system and the limitation of green credit loan management.The reasons for these problems include the lack of implementation of management system before loan,asymmetric environmental information of loan enterprises,and imperfect political mechanism related to green credit.Find out the cause of the problem that has been found,and put forward the corresponding guidance suggestion.This paper focuses on how to reduce the risk of bank green credit in order to find better management means.It is not only helpful for SocGen to improve the risk management system of green credit,but also helps SocGen to improve the risk management level of green credit.