The State Bank of Vietnam (SBV) issued Directive No.03/CT-NHNN on March 24 on promoting green credit growth and managing environmental and social risks in credit extension.
Accordingly, in regard to the objectives and the overall tasks, the SBV Governor required the banking sector to focus on protecting the environment, improving the efficiency of the utilization of natural resources and energy; improving environmental quality and human health, and ensuring sustainable development when providing loans. The Governor also asked credit institutions to review, adjust and complete institutional framework in line with the objective of green growth; to provide funds for environmental friendly projects and plans on production and business, supporting enterprises to implement green growth, thereby fulfilling objectives of green growth and sustainable development.
The SBV Governor required entities at the SBV headquarter to advise and assist the Governor in effectively implementing the National Action Plan for Green Growth in 2014-2020 period; Credit Department to coordinate with the SBV entities to formulate and implement measures of promoting green credit growth in accordance with approved national strategy for green growth; to organize training programs on green credit and environmental risks management; to guide credit institution in formulating and implementing the system of managing environmental and social risks...
The SBV branches were required to proactively monitor socio-economic situations and banking operations in their locations for making recommendations to the SBV Governor about measures of managing environmental and social risks in credit extension and promoting green credit growth in line with practical situations in their locations; actively disseminate and enhance awareness of green credit growth and environmental risk management in credit extension.
Credit institutions were required to perform the following tasks: (i) Pursuant to the approved National Strategy for Green Growth, programs and action plans of ministries and People's Committees, to proactively develop green credit policy and programs with the aim of increasing the proportion of green credit in the structure of credit investment portfolio; (ii) to formulate and implement measures of managing environmental risks in credit extension; (iii) to implement the task of information and communication about the environmental and social risk management and their green credit policy to create high consensus from the public and enterprises; (iv) to make quarterly reports.
This Directive took effect from the date of signing.
DH