ISSN: 2265-6294

Policy Recommendations for Green Credit Development at Commercial Banks in Vietnam

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Nguyen Quoc Huy,Nguyen Thi Loan

Abstract

This study was conducted to determine the components of green credit development based on a survey of officers and employees working at Vietnamese commercial banks. Most commercial banks currently only revolve around financing green projects proposed by the Government but have not actively supported businesses. Therefore, the study has synthesized, systematized, developed, and supplemented theoretical issues on green credit. The formal research was conducted quantitatively through interviews with a sample size of 1050 bank officers and employees. The article has completed the study objectives set out and evaluated the structural model results showing that all eight factors positively influence the development of green credit. Eight factors include (1) Support policy, (2) Financial capacity, (3) Marketing strategy, (4) Banking technology, (5) Quality of human resources, (6) Management of risk, (7) Legal framework, and (8) Environmental policy at the 5% significance level. Finally, based on the research results, the authors propose eight policy implications to contribute to developing green credit for Vietnamese commercial banks in the future.

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