Case Study Of Green Finance Business Of Hebei Bank

The financial industry plays a central role in China’s economic development and serves as a lifeline for its growth.Building a stable,efficient,and sustainable financial system through the financial sector is crucial for the future development of the Chinese economy.In the 2020 United Nations conference,China announced its goal of "peak carbon emissions and carbon neutrality." The G20 summit also emphasized the need to promote finance for green development,provide more suitable green financial services,and enhance the synergy between industrial,financial,and fiscal policies.This is not the first time China has proposed supporting the development of green finance.As a heavily industrialized province,Hebei Province is a key area for environmental governance and enterprise transformation.Therefore,studying the development of green finance in Hebei Bank can help understand its impact on society,the environment,and the bank itself.It can also contribute to identifying practices and approaches to efficiently promote green finance development in city commercial banks.This study selects Hebei Bank as the research object for the following reasons:Firstly,current research on green finance in China mainly focuses on larger commercial banks with better development and greater scale.However,city commercial banks are more familiar with local policies and enterprise conditions,and their smaller size makes them more flexible in adopting changes.City commercial banks can better meet the specific green finance needs of their respective provinces.Secondly,Hebei Province has a relatively large proportion of high-pollution and high-energy-consuming enterprises in its economic structure.By analyzing the various effects of developing green finance in Hebei Bank,the environmental impact of green finance development can be more prominently demonstrated.Thirdly,analyzing the product innovation and development process of Hebei Bank can showcase how city commercial banks with limitations in size,funding,and personnel can maximize the use of limited assets to develop green finance business.Firstly,studying and researching relevant domestic and international literature lays the foundation for the subsequent research.By integrating the overall situation of Hebei Bank,the development process of its green finance business,and relevant regulatory requirements,this study analyzes the innovation and development of green finance products,presenting an overview of the development of Hebei Bank’s green finance business.Secondly,the internal and external motivations for the development of green finance business in Hebei Bank are analyzed.Additionally,by comparing Hebei Bank with banks that have well-established green finance businesses and similar-sized city commercial banks,the study analyzes the strengths and weaknesses of Hebei Bank and provides recommendations to address the shortcomings.The analysis reveals that the main driving factors for the development of green finance business in Hebei Bank are national and provincial policies,the transformation of the local industrial structure,and the bank’s risk mitigation efforts,business growth,and rationalization of loans.In the process of developing green finance business,Hebei Bank has made progress by actively establishing relevant institutional systems and standards,issuing green bonds,and building an independent bond fund management system,among other efforts.These initiatives have helped address some challenges and achieved advancements in green finance business,contributing positively to the transformation of the local economic structure,adjustment of the bank’s loan structure,and enhancement of its risk management capabilities.However,Hebei Bank still faces challenges such as insufficient innovation in its product system,inadequate information disclosure,incomplete organizational framework,and a lack of talent allocation.This study provides optimization suggestions based on the experiences of other banks.