| Environmental issue has become the most important unconventional security challenge that human is currently facing.Since the 20 th century,136 countries around the world have put forward "carbon neutrality" commitments.China is the largest country of carbon emission around the world while playing a key role in global peak carbon dioxide emissions and carbon neutrality.In September 2020,China proposed that carbon dioxide emissions in China would reach the peak by 2030 and strive to achieve carbon neutrality by 2060.In the future,China will accelerate the transformation to low-carbon of the entire society,realizing the change from high carbon economy to low carbon economy.Under the dual-carbon strategic goal,setting up regulations or applying market approach to restrict carbon consumption can increase emission reduction cost of high-carbon industry leads to low profitability and acceleration of asset depreciation caused by restricting fossil fuels.Consequently,it will further become “stranded asset”,which will lead to negative effect on solvency of companies caused by an increase of cost and asset loss,thus increasing performance risk.With the support of dual-carbon strategy,commercial banks play a key role in financial resource allocation.At present,there are still many problems in the credit risk management of China’s commercial banks.To satisfy the services and support dual-carbon strategy,we should keep strengthening and upgrading credit risk management system.Commercial banks in China have invested in a considerable proportion of money in carbon-intensive industries,strengthening credit risk management can effectively help with resource allocation and promote low carbon transformation of the whole society.It is an urgent need for stable development and become a must-have for improvement of risk management capability.Although commercial banks in China have gained experience in exploring climate risk management,most risk management methods are still general,instructive and systematic,lack of practice.Regulatory authorities encourage to incorporate climate risk into the risk management framework.As a result,commercial banks should actively explore environmental risk management and keep improving risk management system.This paper firstly conducts a fundamental theory analysis by studying the theory of credit risk management,risk measurement tools and technologies to lay a foundation to the research.Secondly,this paper points out the problems of C Bank,Shandong Province branch including inadequate mechanism construction,high concentration of carbon assets,and lack of risk identification and quantitative knowledge,through the way of conducting a qualitative and quantitative analysis of high carbon asset risk management of C Bank,Shandong Province branch.Meanwhile,it carries out a stress test on high-carbon assets of Bank C in Shandong Branch,predicting credit risk tolerance under stress situation in relative industries.Lastly,based on the analysis of question reasoning,it raises effective measures like strengthening target-oriented proactive risk management,orderly promoting credit structure adjustment,improving institutional mechanisms,as well as enhancing risk measurement and application for high carbon assets.This article studies the transmission mechanism of carbon emission constraints to credit risks of commercial banks,and raises that carbon emission constraints will transit to company operation risk through operational cost,investment risk and asset loss.Under the effect of credit rationing,this will ultimately transform into commercial bank credit risk due to information asymmetry that leads to reverse selection and moral hazard.The abovementioned transmission mechanism is of innovative significance to enrich the risk management framework of commercial banks.At the same time,this paper proposes a series of risk management actions for commercial banks’ reference,which provides the practical value to push financial resource allocation and reach the dual-carbon strategic goal. |
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