Research On Green Bond Risk Management In Commercial Banks

The progress of science and technology has brought about the rapid development of the world,but also caused great damage to the earth's environment.Therefore,green development,sustainable development will undoubtedly become the way of future development.whether it is the 13 th Five-Year Plan,Belt and Road or the G20 Summit," building a green financial system " has become a hot topic for discussion.a huge market is opening up with it.in 2016,industrial bank and Pudong Development Bank issued the first batch of green bonds in China for the first time.Among them,the issuance of green financial bonds of Pudong Development Bank is 20 billion yuan,and Industrial Bank is 10 billion yuan,and once issued,it has been oversubscribed.According to the investigation of green financial market from 2015 to 2020 by the Financial Research Institute of the Development Research Center of the State Council,the amount of green financing demand in China is about 290 million yuan,but the existing financial resources can only meet some green financing needs.Thus,China's green bond market prospects are broad.At the same time,with the continuous promotion of the concept of sustainable development,green bonds are more and more popular with investors.The prospect of green bonds is broad and the investment potential is huge.With the continuous improvement of green financial system,more and more commercial banks participate in the ranks of green bond issuance.But because of the development time of green bond Not long,the relevant aspects of the system is not perfect,green bonds in the process of issuance inevitably face a large risk.Therefore,how to manage the risk of green bonds is also one of the urgent problems to be solved in the development of green bonds by industrial Bank and other commercial banks in China.In view of the fact that industrial Bank has always been a model enterprise of China's joint-stock banks,since its establishment,industrial Bank has been actively responding to national policies and actively assuming social responsibility in the course of operation.Since the introduction of green bonds in China,industrial has been actively preparing for the issuance of green bonds,including the establishment of green project evaluation system,green project evaluation system,bond raising fund system and other related systems.This paper takes the issuance of green bonds of industrial Bank as the case study object,which has certain theoretical value and practical significance.First of all,this article combs the domestic and foreign research present situation and the green bond correlation definition and the characteristic foundation The green bond market at home and abroad is compared.Secondly,afterclarifying the meaning of green bond risk management and its theoretical basis,synthetically analyzes the current situation of risk management of industrial Bank and draws corresponding enlightenment.It also points out the existing problems of green bond risk management,including the shortage of green project talents,the lack of wind control mechanism for green bonds,and the lack of uniform standards for raising funds.Finally,through analyzing the current situation of risk management of commercial banks' green bonds,combining with the concrete measures taken by industrial in risk management,this paper puts forward eight specific suggestions from the aspects of internal control and external control,including establishing risk management system,establishing specialized project management team,improving risk quantitative analysis level,adopting equatorial principle as operational standard,and establishing unified green bond issuing standard,perfecting third-party certification and supervision mechanism,giving full play to the supporting role of local government,perfecting the team of green financial bond investors,etc.In order to improve China's green bond risk management mechanism.