Latest comments posted about Chinese banks: time to go green on ChinaDialogue en-gb http://www.chinadialogue.net/article/show/single/en/644-Chinese-banks-time-to-go-green http://staging.chinadialogue.net/images/cdlogo.gif http://www.chinadialogue.net/article/show/single/en/644-Chinese-banks-time-to-go-green The news article points out that 1) reform has indeed not entirely severed ties between the government and commercial banks. As long as the government still holds the majority of shares in the commercial banks, encouraging the problem, there's no way it can be solved. In reality, foreign strategic investors are still skeptical about commercial banks at the reform stage. The government has no means by which to guarantee them that it will not in future adjust the capital structure of the state-owned commercial banks. 2) Due to barriers to entering the marketplace, competition in the banking sector has been restricted. 3) According to the large majority of commercial banks, bankruptcy is just not feasible. If they face financial difficulties, undoubtedly the government will once again offer help in weathering the storm. 4) The preservation of commercial banks and their operation still depends on the money flow brought by rapid economic growth. Will this influence the development of China's banking sector or not? Wed, 31 Jan 2007 17:00:09 -0500 http://www.chinadialogue.net/article/summary/644#comment-1156 http://www.chinadialogue.net/article/summary/644#comment-1156 Perhaps it is worth quoting from the Ethical Policy of the UK Co-operative Bank (which can be found on their web site). Putting a Sustainable Future at the Heart of Our Ethical Policy Ever since we introduced our Ethical Policy in 1992, we have made it a principle not to invest your money in companies needlessly damaging the environment. But since then, it has become increasingly clear that the way we live now is not sustainable. We are using up non-renewable natural resources, such as fossil fuels, much faster than we are finding alternatives for them. We are using up renewable resources, such as timber, much faster than they can be replaced. And we are constantly pumping out all kinds of unnatural chemicals that the Earth and its atmosphere are unable to absorb or make safe. Our growing recognition of these stark facts, and of the part we all have to play in averting catastrophe, led in 1996 to the introduction of our Ecological Mission Statement, and we are now incorporating its key principles into our Ethical Policy, by making a commitment not to invest money in businesses whose main activities are fundamentally at odds with our principles. Customers who responded to the most recent ethical policy ballot agreed that we should not invest in any business or organisation that, as a core activity, relies on: The extraction or production of fossil fuels which may contribute to problems such as global climate change and acid rain - 70% The manufacture of unnatural chemicals with may contribute to problems such as ozone depletion or which may accumulate in nature - 88% The unsustainable harvest of natural resources such as timber clearance which may lead to deforestation - 94% Furthermore, we will seek to support businesses involved in: Recycling and sustainable waste management - 98% Renewable energy and energy efficiency - 98% Sustainable natural products and services, including timber and Organic produce - 97% The pursuit of ecological sustainability - 97% Fri, 22 Dec 2006 11:19:08 -0500 http://www.chinadialogue.net/article/summary/644#comment-820 http://www.chinadialogue.net/article/summary/644#comment-820 This is a very interesting article that touches upon one core issue often neglected in the discussion: Western consumption fuelling the drive to ever cheaper goods. The 'perfect market' does not consider environmental standards. And neither do consumers when given the choice between two price tags. However, I disagree with the author's concluding optimism. Western imposed standards, for all their controversy, are the only way for consumers to make ethical choices, which may then influence the market. Only then, I believe, will banks find it in their interest to impose these standards on themselves. Fri, 22 Dec 2006 12:08:59 -0500 http://www.chinadialogue.net/article/summary/644#comment-822 http://www.chinadialogue.net/article/summary/644#comment-822 I am not convinced that China wants international goodwill through ethical lending practices. After all, it undermines international financial institutions, who attach stringent conditions to their loans. These loans are linked to various economical, social, political and at times, environmental issues. Further, China's international image as 'Third World Champion' has allowed it to pursue lucrative investments in sensitive areas, for example in Sudan, Zimbabwe or Burma. This suggests to me that Beijing has in fact scant regard for international opinion. Fri, 22 Dec 2006 14:47:01 -0500 http://www.chinadialogue.net/article/summary/644#comment-823 http://www.chinadialogue.net/article/summary/644#comment-823