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PBOC's New Tool May Boost Green Credit by CNY3 Tln in 2022: Herald

MNI (Singapore)

The PBOC's new lending tool formulated to boost bank lending to carbon reduction efforts may lead to as much as CNY3 trillion additional green loans next year, and help boost overall social financing, the 21st Century Business Herald reported citing Dai Zhifeng, research head of Zhongtai Securities. The central bank didn't set a fixed scale, which left open the upper limit, the newspaper said. As intended, the PBOC will provide 60% of the principal while commercial banks provide the remaining 40% when lending to green projects, an arrangement that both utilizes banks' capital and encourages prudence, the newspaper said citing Zeng Gang, deputy director of the National Institution for Finance & Development.

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