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IFC, China Banking Regulatory Commission Launch Forum to Support Sustainable Banking in Emerging Markets

Beijing, China, May 16, 2012 - IFC, a member of the World Bank Group, joins the China Banking Regulatory Commission in hosting banking regulators, government officials, and other financial sector representatives from 12 countries to the first International Green Credit Forum today to build partnerships and discuss ways of scaling up sustainable banking in emerging markets.
The event, with participants from countries such as China, Bangladesh, Brazil, India, Indonesia, Lao PDR, Malaysia, Mongolia, Nigeria, Republic of Korea, Thailand, and Vietnam, highlights business opportunities in sustainable banking and “green growth” and supports the financial sector in creating long-term value and economic growth.
“CBRC is pleased to host today’s forum jointly with IFC to provide a discussion and knowledge-exchange platform on sustainable banking,” said Wang Zhaoxing, Vice Chairman of CBRC. “The banking and financial sectors have an important role in promoting sustainable development through financial transactions. Financial institutions can also reduce their own risks and seize business opportunities by encouraging sustainable business practices among companies. It is important for us to catalyze learning across markets in this new field.”
In 2007, China launched its path breaking Green Credit Policy , encouraging banks to increase lending to energy efficient and climate-friendly projects, while reducing lending to enterprises with high levels of pollution and energy consumption.  Since then, IFC has supported CBRC and Chinese banks in implementing the policy.
In February of this year, CBRC launched the Green Credit Guidelines, which will help banks integrate sustainability into their lending cycle. The guidelines recognized IFC’s technical contribution via IFC’s Sustainability Framework for private sector investments. The guidelines apply to all commercial bank lending in China and require banks to adopt international standards in overseas financing and enhance their disclosure of environmental and social performance.
Two of China’s major banks, China Development Bank and Industrial and Commercial Bank of China, have implemented the Green Credit Policy and built up green credit loan portfolios approaching a combined $200 billion, as of 2011, in areas such as waste treatment, renewable energy and pollution control.
At the Green Credit Forum, CBRC, Korea Financial Services Commission, Bangladesh Bank and the Brazilian and Nigerian central banks will share their regulatory experiences in guiding banks toward more effective management of environmental and social investment risks. Participants will also focus on innovation and financing of “green” projects that protect natural resources and strengthen social and economic development. A number of commercial banks, including signatories to the Equator Principles, will share their experience and perspectives on sustainable banking.  The Equator Principles are a voluntary environmental and social risk-management framework developed by private sector banks.
”CBRC’s leadership in sustainable banking has created an impressive impact inside and outside of China,” said Karin Finkelston, IFC’s Vice President for Asia Pacific. “We are excited to see that our partnership approach with China is expanding to other emerging markets. IFC is committed to continue supporting sustainable banking through policy dialogue, capacity building, and knowledge sharing.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit .
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