Most innovative green bank 2017
Along with other Chinese banks, Industrial Bank recorded robust growth in green-finance provision in 2016. But while its peers have been busy pursuing strong growth in the provision of green finance, Industrial Bank was sober enough to stay alert to the risks associated with its green lending activities.
To ensure quality growth of its green finance and ward off potential risks, the bank deployed advanced information technology to develop an innovative management system for its green lending.
The system, installed in December 2016, is the first of its kind in China’s banking sector. It was developed by the bank, which drew on its experience of green lending over 11 years. It has enabled Industrial Bank to upgrade its management of green lending operations in four ways.
First, it helps the bank to better assess the social and environmental benefits of its green credit and bonds, and to track the associated risks in accordance with the Equator Principles it has adopted. Second, it allows it to standardize procedures for green lending and better manage customer relations. Third, it conducts performance reviews for the bank’s employees in the green-finance division continuously. And fourth, as an information collection and file management system, it enables the bank’s green-finance team to better understand customer needs through data analysis so as to design and develop innovative tailor-made green-finance products.
In the last decade, Industrial Bank has led other Chinese banks in offering innovative green-finance products: the first green loan under the IFC’s China Utility-Based Energy Efficiency (CHUEE) Programme, the first green loan using carbon credit as security, the first asset-backed securities backed by the bank’s green credit, to name just a few.
With four state-owned commercial banks fast expanding their green lending in the domestic market in recent years, Industrial Bank, a pioneer in China’s green-finance sector, has embraced innovation to set it apart.
Supported by a team of more than 200 staff, the bank now offers the most comprehensive portfolio of green-finance products among Chinese banks, including green ABS, green financial leasing, green trust, green investment funds, green consumer loans and repurchases of assets backed by airline companies’ carbon quotas.