Abstract
With the deterioration of the global natural and social environment, people have begun to pay attention to the fulfillment of corporate social responsibility, and banks as special financial institutions are no exception. In 2003, the emergence of the Equator Principle became the basic criterion for the banking industry to fulfill its social responsibility. Under such a social trend, China’s banking industry proposed a “green credit” policy in 2007, but it is still far from the equatorial principles introduced internationally. Therefore, how to accelerate the pace of China’s banking industry entering the Equator Bank is a question worth considering. We need to set up a bank performance evaluation system based on the equator principle to promote the development of the equator principle in China’s banking industry, which is also the focus of this article. In this paper, through the study of the practice of the Equator Principles at home and abroad, a set of performance evaluation systems for the banking industry based on the Equator Principles is established. The Industrial Bank is used as an example to apply this evaluation system.
Highlights
The Equator Principles are an unofficial regulation designed by the world's leading financial institutions in accordance with IFC's environmental and social policies and guidelines
Appropriate and advanced performance evaluation systems for commercial banks are conducive to the establishment of a sound incentive and restraint mechanism for commercial banks to improve their level of management and overall competitiveness
From the current point of view, building a bank performance evaluation system that includes the equator principle is one of the most effective ways to promote the fulfillment of social responsibilities by the banking industry in China, and it is the key to promoting China's sustainable development
Summary
The Equator Principles are an unofficial regulation designed by the world's leading financial institutions in accordance with IFC's environmental and social policies and guidelines. They are designed to provide minimum standards for due diligence to encourage corporate social responsibility risk management principles. The performance evaluation system of most banks in China still takes profit maximization as its core goal and turns a blind eye to environmental and social issues. They believe that these issues have nothing to do with their interests. According to the World Bank rankings in 2016, only six of the top twenty are not Equator, and five of them are from China
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
