by Lia Sciortino
China's Central Bank Goes Green
Mekong Media Roundup | Environment | China
BEIJING - Enterprises that have poor environmental records risk being rejected for bank loans under a nationwide credit system that factors environmental information into loan applications.
The People's Bank of China (PBOC), the central bank, is working with the State Environmental Protection Administration (SEPA) to push the initiative, according to Su Ning, the bank's deputy governor.
"This (move) will encourage enterprises to think more about the effect their operations have on the environment," Su said at a press conference in February in Beijing.
The initiative combines legal, economic and administrative means to fight against pollution, he said, noting that the move would complement the central government's efforts to protect the environment.
Once the new credit system is in place, commercial banks will first check the environmental records of borrowing firms before lending them money, he added. (Xin Zhiming, China Daily, Feb. 10, 2007)