The Role of the People's Bank of China and Financial Supervisory Authorities for Greening China's Financial System

Abstract

Climate change has become a significant threat to global economies in recent years. The idea that governments, banks, and regulators should work together to combat climate change and promote sustainable financing is gaining traction. The world’s central banks and financial regulators must take action on climate change and support sustainable financing. For example, consider the proliferation of regulatory bodies like the Sustainable Banking Network and central banks. The literature review is descriptive and relies on secondary sources. The report covers the first four quarters of 2021 and summarizes the monetary authority’s policy operations (goals and achievements). This study includes all scheduled banks and non-banking financial institutions in China in 2021, both public and private, due to their roles in green and sustainable finance. We spoke with four seasoned market analysts and four active and retired government officials and policymakers from central banks and financial supervisory authorities. While China’s economic development is undoubtedly threatened by climate change, the country has little choice but to continue to rely on its time-tested approaches to creating riches. The country cannot progress otherwise. Good news: The People’s Bank of China is making eco-friendly banking the norm in China’s financial sector.