The State Bank of Vietnam (SBV) has recently issued Decision No.1604/QD-NHNN on approving a project on green bank development.
Illustrative image (Source: VNA)
The project aims to raise the banks’ awareness and social responsibility for environment protection and climate change prevention, gear capital flows into eco-friendly projects, and promote green production, services and consumption, towards boosting green growth and sustainable development.
Accordingly, all banks will strive to issue regulations on environment and social risk control by 2025. At least 10 -12 banks will have specialised units on environment and social risk control while 60 percent of the banks will access loans used for green projects.
The SBV will issue guidelines on developing green banks and credit, provide them with incentives such as preferential loans from international organisations and development partners.
The scheme suggests measures encouraging economic benefits to promote cashless payment on the back of technological advances amid the fourth industrial revolution.
Credit organisations were asked to build a strategic framework on green banks depending on their business orientations, market segment, target products and clients, capacity and strength, which must be reported to the SBV.
The review of the effort will be conducted annually.-VNA
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