funds with the current financial market. Therefore, the Government needs to design a legal mechanism and environmental rules for banks, in order to create motivation as well as constraints of the banking system on the issue of "green growth" of the country.
In addition, the Government should also assign and direct each ministry to perform specific tasks such as:
Firstly, Strengthen measures and policies to support and encourage banks to provide green credit services.
Lessons learned from successful countries in green credit strategies show that, in the initial stages, most governments must provide support to create the most favorable conditions for green banking to be provided to the economy. For banks providing green credit services, there should be support policies on taxes, fees, and even interest rates to create momentum for banks. In addition, to provide green credit, the survey results also show that there should be support solutions on technology and techniques to assess environmental factors for investment projects.
Second, classify and rank economic sectors according to the level of environmental impact; at the same time, develop specific assessments, guidelines and recommendations on production technology for each manufacturing industry to serve as a basis for credit institutions to consider and compare when considering granting credit. In addition, research and develop a list of industries that should limit investment and credit granting.
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Third, map out all different plans to easily identify overlaps; study the zoning of ecologically or socially sensitive areas (such as those near nature reserves) with sufficient reliable information (baseline data) for banks to refer to when considering and deciding to lend capital.
Fourth, develop indicators to measure and quantify green credit growth. Green certificates can be granted to qualified banks; at the same time, it is necessary to
Develop specific financial mechanisms to encourage greening of banks. Announce the top 10 banks with the best green credit activities on mass media, establish and award the top 3 banks. At the same time, publicize information on polluting projects as well as the banks that finance the projects, and rank banks based on this criterion.
CONCLUDE
The impact of bank lending activities on the environment is undeniable. Policies and laws have initially provided regulations on this issue. However, the regulations are still encouraging, not mandatory, and there are no specific guidelines for banks to properly perform their roles. Therefore, improving the law combined with raising awareness for banks is one of the necessary measures for banks to participate more actively in the current environmental protection work through their lending activities.
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