A Probe into the Path of Internalization of Green Development Concept in China's Commercial Banks Credit System

Abstract

Since the mid-1990s, China's green credit business has witnessed great progress. Generally speaking, the proportion of green credit balance in total loans, however, is still quite low. This paper believes that on top of some objective reasons that the green credit business started late and the industrial structure is less strong, the subjective awareness of green development and environmental responsibility of banking financial institutions is weak, systematic green credit policy is deficient and internal control mechanism is imperfect, which are the main reasons for constraining the development of green credit business. Therefore, the current paper explores the feasible path to promote the rapid development of green credit business from the perspective of the internalization of green development concept in the bank credit system. It mainly consists of three parts: firstly, it expounds the concept of green credit from the perspective of the conception and definition of internalized green credit development; secondly, it analyzes the status quo of China's green credit development and its functional reasons; finally, with the three paths of proposing a green credit policy, establishing a green development concept and strengthening internal mechanisms of management and control, we integrate the green development concept into the bank's green credit system for the purpose of promoting the development of green credit business in banking financial institutions.

Keywords: green credit, credit policy, path analysis

DOI: 10.7176/PPAR/9-4-02

Publication date: April 30^th 2019