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Financial Reform in Zhejiang Bears Fruit: Multiple Measures for “Green” Finance
2018-06-19 10:46:44

“Being ecologically friendly” tends to be an important factor in investment introduction and local economic evaluation, yet in the Huzhou Branch of ICBC, it is also a vital criterion in credit assessment. Attach more importance to environment protection in its credit assessment, the bank will take it as a prerequisite for customers to handle certain businesses. For customers who have violated the rules of environment protection (to be remedied yet), or those who are rated as Black in environment credit rating, no more financing (including low-risk business) will be provided. This is what the journalist learned from the Forum of Reform and Innovation Pilot Area for Green Finance held in Huzhou on 12th June.

Promoting “green” finance is an important means for green development. On 14th June 2017, the State Council decided to set up green finance pilot areas in Zhejiang and other four provinces, each with its own orientation and characteristics, and explore experiences that can be promoted to other places, so as to push economic transformation and upgrading towards green development. Over a year, the green finance pilot areas in Zhejiang have handed in a brilliant report.

As innovative pilot areas for green finance, Huzhou and Quzhou have carried out solid reform according to the requirements of the State Council and the opinions of related departments.

Huzhou took the lead in issuing a series of green finance policies and measures: Huzhou Municipal Government issued 25 items of policies and input 1 billion yuan of financial fund; the Huzhou Central Branch of the People’s Bank of China (PBC) included green credit performance into macro prudential assessment; the Huzhou Banking Regulatory Branch Office put forward green banking regulatory policies to promote reform towards green finance. By the end of April, 2018, the green loan balance of Huzhou City hit 75.554 billion yuan, 0.785 billion more than that at the beginning of this year.

As the main force in green finance, Quzhou played an active part in guiding the banks to construct “four special mechanisms”, put aside 25% of the new credit quota as green loan, and increased its support for green industry. In addition, it also promoted green development by green bond, green fund and green insurance.

As authorities from the Bank of China point out, there is still much to be improved despite the brilliant performance in green finance reform. On the one hand, from the perspective of the whole country, there are no consistent standards in green finance, and the banks differ greatly in defining what is green finance, which brings difficulties to certain businesses. What’s more, as there are still some barriers in information integration and sharing, it is difficult for some institutions to acquire important information, and therefore cannot make proper judgment. On the other hand, there are still some enterprises which are not real “green”. To these problems, our province will try to set up a standard system for green finance, and attempt a checklist management, so as to provide more financial resources to green enterprises.

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