Կանաչ բանկերի կայացման հիմնախնդիրները ՀՀ-ում / The Problems in Establishing Green Banks in the RA

Abstract

Our research delved into the possibility of establishing Green Banks in the RA. In particular, the environmental and social risk management system (ESMS) of commercial banks of the RA, its key components, tools, and improvement opportunities were analyzed. At the same time, the guiding action and steps of the Central Bank of the RA, as a mega-regulator and an institution with exclusive competence of Banking Supervision, were considered, which should be aimed at motivating green financing by commercial banks of the RA. As a result of the research, specific recommendations and requirements for the formation of financial assets by the commercial banks of the RA were presented: evaluation of the creditworthiness of the borrower, proposed business plan, assessment of the ESMS of the field of activity, credit agreement, a Negative list, conducting on-site visits to the borrower’s place of operation, monitoring report in drafting, organization of appeal processes and addressing other fields. Regarding the Central Bank of the RA, recommendations have been presented: development of a new reporting form on quarterly basis, inclusion of the assessment and forecasts of the ESMS in the CAMELS rating system of commercial banks, weighting of green assets with a possible low-class risk in the sum of credit risk, market and operational risk (RWA), commercial banks’ inclusion of risk calculation of ESMS in stress tests, exemption from the basic economic normative of compulsory reserve for the funds raised as a result of green bonds issue, application of preferential interest rates in the order of financial asset classification and potential loss reserves for green financial assets provided.