Date: March 11, 2013 Source: People's Daily Online
It is set out in the Report of the 18 th CPC National Congress that China will place the building of ecological civilization at an unparalleled position to build a “Beautiful China” and achieve the sustained development of the Chinese nation. At the end of last year and the beginning of this year, many regions including Beijing, Tianjin, Hebei, Henan and Jiangsu were attacked by smoky fog incessantly, which gave rise to high concerns about environmental protection among all social circles. Now, an important task for commercial banks, as the most important pivot for the distribution of resources in modern economic system, is how to bring into play their roles to actively develop green finance, guide social capital to flow and assemble toward the areas featuring low energy consumption, low emission, low pollution and high efficiency, and boost the building of “Beautiful China”.
During the period of the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC), Board Chairman Gao Jianping of Industrial Bank (IB), a CPPCC member, pointed out in the interview with the People's Daily Online that the green finance in China still remained in the elementary stage and there were many difficulties and obstacles either in its own development or support to the building of “Beautiful China” and promotion of ecological civilization. The banking industry should, Chairman Gao suggested, make active exploration and innovation and take actions in the field of green finance. He hoped that the whole society could pay more attention to and actively push forward environmental protection, energy conservation and emission reduction, and jointly build ecological civilization.
Reporter: China now faces very heavy environmental pollution, and the objective to build a “Beautiful China” has been proposed in the 18th CPC National Congress. Against such a background, what actions should banks take?
Gao Jianping: Standing at the core of modern economy, banks are an important pivot for the distribution of social and economic resources. To serve the building of “Beautiful China” is a responsibility that they cannot relinquish and a great opportunity that they cannot afford to lose. Specifically, the pivot role of banks in distributing resources should be brought into full play. We should vigorously develop green finance, guide and actuate social capital to flow and assemble toward the areas featuring low energy consumption, low emission, low pollution and high efficiency, and by improving the distribution of social resources, actively push the transformation of economic development model and industrial conversion and upgrading, so as to accelerate the construction of “Beautiful China”. I believe that it is most practice action and one of the most urgent tasks for the domestic banking industry to implement the strategic arrangement and serve the building of “Beautiful China”.
Reporter: As a member from the economic circle, do you have any advice for the developing green economy and low-carbon economy and encouraging green finance?
Gao Jianping: The development of green economy and low-carbon economy is substantially the profound transformation of economic development model. This is a long and strenuous strategic task which requires vigorous promotion of the government and joint efforts of all social circles. I suggest that the government accelerate the legislation for the development of green economy and low-carbon economy, work out a well-established system of relevant policies, accelerate the construction of resource-saving and environment-friendly production mode and consumption model, and enhance sustainability substantially.
In the perspective of the banking industry, I suggest encouraging and pushing the further development of green finance in the following aspects:
First, issue the rules for the certification of green finance projects as soon as possible, provide guidance for commercial banks to get involved in green finance projects and unify the statistical standard for green credit, and encourage banks to list these loans separately and carry out classified assessment;
Second, encourage banks to issue special financial bonds for the business of green finance and enhance their enthusiasm in investing their resources in the field of green finance;
Third, improve the policy environment for green finance and set down differentiated regulatory and incentive policies. For instance, the green finance based loans meeting the given requirements may be allowed not being covered into the scope of loan-deposit ratio evaluation, and higher tolerance to non-performing loan and looser policy for writing off non-performing and bad debts may be given to green finance based financing meeting the given requirements;
Fourth, give financial and tax-related support, reducing the business tax rate of commercial banks in handling green finance business and relevant income tax rates, allow pre-tax deduction of the provision for green finance loans, and discount for the loans extended by banks to green finance projects;
Five, suggest the local government establishing green development fund or guarantee company and cooperating with banks and jointly providing support for them to carry out energy conservation and emission reduction projects targeting SMEs.
Reporter: Now, the concept of green finance has been accepted widely. As the earliest forerunner in the field of green finance in China, does IB has any experience for reference?
Gao Jianping: Green finance is not only innovation in specific products one after another, nor the introduction of a concept. It involves the all-sided reform from the development strategy, organizational structure, and system construction to business flow of a bank.
Reporter: What new actions does IB take in promoting energy conservation and emission reduction and boosting environmental protection?
Gao Jianping: In 2013, we will focus on the following two areas to further intensify our efforts to develop green finance. On the one hand, we will continue intensifying the construction of green finance brand and system, and consolidating and spreading the influence; on the other hand, we will keep intensifying product innovation and diversifying the product line of green finance, especially in the areas of utilization and protection of water resources, and further accelerate the process of research and innovation, striving to make achievements as soon as possible.
Reporter: On March 3, Party Secretary Shang Fulin of China Banking Regulatory Commission (CBRC) put forward that the banking industry should “provide supporting financial services for urbanization in a desired manner and support the sustained healthy development of the real economy”. The new round of urbanization has also become a topic to which the common people pay great attention. With regard to supporting financial services for urbanization, in your opinion, what planning and innovative measures should the banking industry have?
Gao Jianping: Urbanization contains the greatest potential for China to increase domestic demand, and it is also one of the most important main battlefields for commercial banks. Now, urbanization finance has become a mainstream and characteristic business field of IB.
The new round of urbanization not only brings new opportunities for the development of commercial banks, but also new requirements. Let's take IB as an example. In the future, our bank will concentrate on the following aspects to boost the development of new urbanization. First, we will exert our existing advantages in urbanization finance and continue further investing financial resources and intensifying service support for the development of urbanization. Second, we will bring into play our leading advantages in the field of green finance, and promote the concepts and requirements of energy conservation, emission and ecological civilization to be practiced in the process of new urbanization. We will keep intensifying financial investment in the areas and projects related to energy conservation, emission reduction, green environment and construction of ecological civilization, and push urbanization onto a new intensive, smart, green and low-carbon path. Third, grasping the core of urbanization of human beings, we will enrich and complete the contents of financial service and improve the level of financial service.