Who has a green credit management system?

Notice of China Banking Regulatory Commission on Issuing Green Credit Guidelines

Yin Jian Fa [2012] No.4

All banking regulatory bureaus, policy banks, state-owned commercial banks, joint-stock commercial banks, financial asset management companies, postal savings banks, provincial rural credit cooperatives, trust companies, enterprise group finance companies and financial leasing companies directly supervised by the CBRC:

In order to implement macro-control policies, regulatory policies and industrial policies such as the Comprehensive Work Plan for Energy Conservation and Emission Reduction in the State Council during the Twelfth Five-Year Plan (Guo Fa [201] No.26) and the State Council's Opinions on Strengthening Key Environmental Protection (Guo Fa [201] No.35).

All banking regulatory bureaus are requested to forward this notice to banking financial institutions within their jurisdiction and urge them to implement it.

China Banking Regulatory Commission

201February 24th

Chapter I General Principles

Article 1 In order to promote the development of green credit in banking financial institutions, these Guidelines are formulated in accordance with the Banking Supervision Law of the People's Republic of China, the Law of People's Republic of China (PRC) Commercial Bank and other laws and regulations.

Article 2 Banking financial institutions mentioned in these Guidelines include policy banks, commercial banks, rural cooperative banks and rural credit cooperatives established in People's Republic of China (PRC) according to law.

Article 3 Banking financial institutions should strategically promote green credit, increase support for green economy, low-carbon economy and circular economy, guard against environmental and social risks, improve their own environmental and social performance, optimize credit structure, improve service level and promote the transformation of development mode.

Article 4 Banking financial institutions shall effectively identify, measure, monitor and control environmental and social risks in credit business activities, establish environmental and social risk management systems, and improve relevant credit policy systems and process management.

The environmental and social risks mentioned in these Guidelines refer to the hazards and related risks that customers of banking financial institutions and their important related parties may bring to the environment and society in their construction, production and business activities, including environmental and social problems related to energy consumption, pollution, land, health, safety, resettlement, ecological protection and climate change.

Article 5 The China Banking Regulatory Commission shall be responsible for supervising and managing the green credit business of banking financial institutions and their environmental and social risk management according to law.

Chapter II Organization and Management

Article 6 The board of directors or the board of directors of banking financial institutions shall establish and practice green credit concepts such as economy, environmental protection and sustainable development, attach importance to the role of banking financial institutions in promoting comprehensive, coordinated and sustainable economic and social development, and establish a win-win sustainable development model with society.

Article 7 The board of directors or council of a banking financial institution shall be responsible for determining the green credit development strategy, examining and approving the green credit targets set by the senior management and the green credit reports submitted, and supervising and evaluating the implementation of the green credit development strategy of the institution.

Article 8 The senior management of banking financial institutions shall, according to the board of directors or the decision of the board of directors, set green credit targets, establish mechanisms and processes, clarify responsibilities and authorities, carry out internal control inspection and evaluation, report the development of green credit to the board of directors or the board of directors every year, and submit relevant information to the regulatory authorities in a timely manner.

Article 9 The senior management of a banking financial institution shall designate senior managers and lead management departments, equip them with corresponding resources, and organize and centrally manage the green credit work. When necessary, an inter-departmental green credit committee can be established to coordinate related work.

Chapter III Policy System and Capacity Building

Article 10 Banking financial institutions shall establish and constantly improve policies, systems and processes for environmental and social risk management in accordance with national environmental protection laws and regulations, industrial policies and industry access policies. Clarify the support direction and key areas of green credit, formulate special credit guidelines, implement differentiated dynamic credit policies, and implement risk exposure management systems for industries that are restricted by the state and have major environmental and social risks.

Article 11 Banking financial institutions shall formulate customer environmental and social risk assessment standards, dynamically assess and classify customer environmental and social risks, and the relevant results shall serve as an important basis for their rating, credit access, management and withdrawal, and adopt differentiated risk management measures in terms of loan "three checks", loan pricing and economic capital allocation.

Banking financial institutions should implement list management for customers with significant environmental and social risks, and require them to take risk mitigation measures, including formulating and implementing major risk response plans, establishing adequate and effective communication mechanisms for stakeholders, and seeking third parties to share environmental and social risks.

Article 12 Banking financial institutions shall establish a working mechanism conducive to green credit innovation, and promote green credit process, product and service innovation on the premise of effective risk control and sustainable business.

Article 13 Banking financial institutions should pay attention to their own environmental and social performance, establish relevant systems, strengthen publicity and education on the concept of green credit, standardize business practices, implement green office and improve the level of intensive operation.

Article 14 Banking financial institutions shall strengthen the capacity building of green credit, establish and improve the identification and statistical system of green credit, improve the relevant credit management system, strengthen the training of green credit, and cultivate and introduce relevant professionals. When necessary, we can use qualified and independent third parties to assess environmental and social risks or obtain relevant professional services through other effective service outsourcing methods.

5 The fourth chapter process management

Fifteenth banking financial institutions should strengthen credit due diligence, according to the characteristics of customers and their projects in the industry and region, clear the content of environmental and social risk due diligence, to ensure that the investigation is comprehensive, in-depth and meticulous. When necessary, you can seek the support of qualified independent third parties and relevant competent departments.

Article 16 Banking financial institutions shall conduct strict compliance review on customers to be granted credit, and formulate the List of Environmental and Social Compliance Documents and the List of Compliance Risk Review according to the characteristics of customers in different industries, so as to ensure the compliance, effectiveness and integrity of documents and related procedures submitted by customers, and ensure that customers pay enough attention to relevant risk points and effectively control them dynamically to meet substantive compliance requirements.

Seventeenth banking financial institutions should strengthen the management of credit approval, according to the nature and severity of environmental and social risks faced by customers, to determine a reasonable credit authority and approval process. No credit will be granted to customers whose environmental and social performance is not up to standard.

Article 18 Banking financial institutions shall urge customers to strengthen environmental and social risk management by improving contract terms. For customers involved in major environmental and social risks, the contract should require customers to submit environmental and social risk reports, formulate statements and guarantee clauses for customers to strengthen environmental and social risk management, set commitment clauses for customers to accept lender supervision, and relief clauses for banking financial institutions when customers manage environmental and social risks in breach.

Nineteenth banking financial institutions should strengthen the management of credit fund allocation, and take the management of customer environment and social risk as an important basis for determining the allocation of credit funds. Environmental and social risk assessment checkpoints should be set up in the design, preparation, construction, completion, operation and shutdown of credit projects. If there are significant potential risks, the disbursement of credit funds can be suspended or even terminated.

Article 20 Banking financial institutions should strengthen post-lending management and formulate and implement targeted post-lending management measures for customers with potentially significant environmental and social risks. Pay close attention to the impact of national policies on customers' operating conditions, strengthen dynamic analysis, and timely adjust asset risk classification, provision and loss write-off. Establish and improve the internal reporting system and accountability system for major environmental and social risks of customers. When customers have major environmental and social risk events, they should take relevant risk disposal measures in time and report the possible impact of the events on banking financial institutions to the regulatory authorities.

Article 21 Banking financial institutions shall strengthen the management of environmental and social risks of overseas projects to be granted credit, and ensure that the project organizers abide by relevant laws and regulations on environmental protection, land, health and safety in the country or region where the project is located. The public commitment to overseas projects to be granted credit should adopt relevant international practices or standards to ensure that the operation of the projects to be granted credit conforms to international good practices in essence.

Chapter V Internal Control Management and Information Disclosure

Article 22 Banking financial institutions shall include the implementation of green credit in the scope of internal control and compliance inspection, and organize the implementation of internal audit of green credit on a regular basis. If major problems are found in the inspection, the responsibility shall be investigated according to these Provisions.

Article 23 Banking financial institutions shall establish an effective green credit evaluation system and reward and punishment mechanism, implement incentive and restraint measures, and ensure the sustainable and effective development of green credit.

Article 24 Banking financial institutions shall publicize green credit strategies and policies and fully disclose the development of green credit. For the credit situation involving major environmental and social risks, relevant information should be disclosed according to law and subject to the supervision of the market and stakeholders. When necessary, a qualified independent third party may be hired to evaluate or audit the activities of banking financial institutions in fulfilling their environmental and social responsibilities.

Chapter VI Supervision and Inspection

Article 25 Banking supervision institutions at all levels shall strengthen coordination and cooperation with relevant competent departments, establish and improve information sharing mechanisms, improve information services, and remind banking financial institutions of relevant environmental and social risks.

Article 26 Banking supervision institutions at all levels shall strengthen off-site supervision, improve the off-site supervision index system, strengthen the monitoring and analysis of environmental and social risks faced by banking financial institutions, and guide them to strengthen risk management in a timely manner and adjust credit investment.

Banking financial institutions shall, in accordance with the requirements of these Guidelines, carry out a comprehensive assessment of green credit at least once every two years and submit a self-assessment report to the banking regulatory agency.

Article 27 When organizing on-site inspections, banking supervision institutions shall fully consider the environmental and social risks faced by banking financial institutions, and define the relevant inspection contents and requirements. Carry out special inspections on areas with outstanding environmental and social risks or banking financial institutions, and urge rectification according to the inspection results.

Article 28 The banking supervision and management institution shall strengthen the guidance on the self-evaluation of green credit of banking financial institutions, comprehensively evaluate the effect of green credit of banking financial institutions in combination with off-site supervision and on-site inspection, and take the evaluation results as an important basis for the supervision rating, institutional access, business access and performance evaluation of senior executives of banking financial institutions in accordance with relevant laws and regulations.

Chapter VII Supplementary Provisions

Article 29 These Guidelines shall come into force as of the date of promulgation. Village banks, loan companies, rural credit cooperatives and non-bank financial institutions shall follow these guidelines.

Article 30 The China Banking Regulatory Commission shall be responsible for the interpretation of these Guidelines. [ 1]

9 document interpretation

The China Banking Regulatory Commission issued the Green Credit Guidelines (Y.J.F. [2065438+02] No.4, hereinafter referred to as the Guidelines), which put forward clear requirements for banking financial institutions to effectively carry out green credit, vigorously promote energy conservation and environmental protection, cooperate with the implementation of the national energy conservation and emission reduction strategy, and give full play to the role of banking financial institutions in guiding the flow of social funds and allocating resources.

The Guidelines require banking financial institutions to implement macro-control policies such as the Comprehensive Work Plan for Energy Conservation and Emission Reduction in the Twelfth Five-Year Plan and the Opinions of the State Council on Strengthening Environmental Protection, promote green credit from a strategic perspective, increase support for green economy, low-carbon economy and circular economy, guard against environmental and social risks, optimize credit structure, improve service level, better serve the real economy and promote the transformation of development mode.

First of all, efforts should be made to promote green credit from three aspects.

Banking financial institutions should increase their support for green economy, low-carbon economy and circular economy; Strictly guard against environmental and social risks; Pay attention to and improve the environment and social performance of banking financial institutions themselves.

The second is to effectively control environmental and social risks.

Banking financial institutions should pay attention to the hazards and related risks that their customers and their important related parties may bring to the environment and society in their construction, production and business activities, including environmental and social problems related to energy consumption, pollution, land, health, safety, resettlement, ecological protection and climate change.

The third is to strengthen the organization and management of green credit.

Banking financial institutions should establish the concept of green credit, determine the development strategy and objectives of green credit, establish mechanisms and processes, carry out internal control inspection and evaluation, clarify the responsibilities of senior managers and institutional management departments, and allocate corresponding resources to ensure the smooth implementation of green credit organizationally.

The fourth is to improve the green credit policy system and capacity building.

Banking financial institutions should improve environmental and social risk management policies, systems and processes, clarify the support direction and key areas of green credit, promote green credit innovation, implement differentiated and dynamic credit policies, implement risk exposure management systems, establish and improve green credit identification and statistical systems, and improve relevant credit management systems.

Fifth, strengthen the management of environmental and social risks in the process of credit.

Banking financial institutions should strengthen environmental and social risk management from three aspects: before lending, during lending and after lending, by strengthening credit due diligence, strict compliance review, making compliance risk review list, and strengthening credit fund allocation management and post-lending management.

Sixth, improve internal control management and information disclosure.

Banking financial institutions should carry out a comprehensive evaluation of green credit at least once every two years, incorporate the implementation of green credit into the scope of internal control and compliance inspection, establish a green credit evaluation and reward and punishment system, and disclose the strategy, policy and development of green credit. In recent years, banking financial institutions have taken green credit as the starting point, innovated credit products, adjusted credit structure, actively supported energy conservation, emission reduction and environmental protection, and achieved initial results. Many banks regard supporting energy conservation, emission reduction and environmental protection as an important part of their own business strategies, and have established an effective green credit promotion mechanism and a relatively complete environmental and social risk management system. Actively innovate green credit products, expand energy conservation and emission reduction, eliminate backward production capacity financing sources, and enhance the borrowing capacity related to energy conservation and environmental protection through accounts receivable mortgage, expected income mortgage of clean development mechanism (CDM), equity pledge and factoring. By the end of 20 1 1, only six banking financial institutions, including China Development Bank, Industrial and Commercial Bank of China, Agricultural Bank, Bank of China, China Construction Bank and Bank of Communications, had loan balances exceeding 1.9 trillion yuan.

The CBRC will strengthen the monitoring, guidance and inspection of banking financial institutions in promoting green credit and preventing environmental and social risks, and regard the development of green credit in banking financial institutions as an important basis for regulatory rating, institutional access, business access and performance appraisal of senior executives.