CBIRC Issues Green Finance Guidelines for Banks and Insurers
The China Banking and Insurance Regulatory Commission (CBIRC) issued the green finance guidelines for banking and insurance sectors, along with related questions and answers (Q&As) on the guidelines. These guidelines shall come into force on the date of promulgation.
The guidelines clarify green finance supervision responsibilities of CBIRC and its local offices to strengthen the guidance and assessment of green finance business of banking and insurance institutions. The guidelines require banking and insurance institutions to:
- thoroughly implement the new development philosophy, promote green finance from a strategic standpoint, increase support for a green, low-carbon and circular economy, prevent environmental, social and governance (ESG) risks, improve their own ESG performance, and promote an all-round green transition of economic and social development.
- establish a green finance organization and coordination mechanism, also encouraging them to carry out innovation in the green finance system.
- seek progress while maintaining stability, adjust and improve credit policies and investment policies, and actively support the building of a clean and low-carbon energy system, particularly in the areas of energy conservation, pollution reduction, carbon reduction, green enhancement, and disaster prevention of key industries and fields.
- strengthen process management of investment and financing activities, conduct due diligence on credit extension and investment, strengthen the management of credit and investment approval, urge clients to strengthen ESG risk management by refining contract terms, and improve post-loan and post-investment management.
- improve green finance management, adopt differentiated and convenient management measures, and optimize the ESG risk management of financing, online financing, and other businesses for micro and small enterprises.
- strengthen internal control management and information disclosure, establish a green finance assessment and evaluation system, implement incentive and restraint measures as well as the mechanism of exempting liabilities after fulfilling duties, to ensure the sustainable and effective development of green finance.
Related Links (in Chinese)
Keywords: Asia Pacific, China, Banking, Insurance, Green Finance, Climate Change Risk, ESG, Sustainable Finance, Guidelines, Disclosure, CBIRC
Featured Experts
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous Article
JFSA Issues Updates on Liquidity Risk FAQs and LIBOR TransitionRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.
