Significant Increase in Green Loans by Chinese Financial Institutions in 2023

The Restrictions on domestic foreign exchange speculationPeople's Bank of China recently released the "2023 Financial Institutions Loan Direction Statistical Report". By the end of 2023, the balance of various RMB loans from financial institutions reached 237.59 trillion yuan, with a year-on-year growth of 10.6%. Among these, the balance of green loans from financial institutions was 30.08 trillion yuan, showing a year-on-year increase of 36.5%, which is a significant improvement from the same period last year.

This astonishing growth rate exceeded the average growth rate of all loans during the same period by 26.4 percentage points. Specifically, green loans are divided into two parts: those directed towards projects with direct and indirect carbon emission reduction benefits, amounting to 10.43 trillion yuan and 9.81 trillion yuan respectively, accounting for 67.3% of the total green loan volume. This indicates significant achievements by financial institutions in supporting sustainable development and environmental projects.

The rapid growth of green loans reflects the active efforts of financial institutions in the environmental protection field. Compared to last year, the balance of green loans increased by 8.48 trillion yuan, becoming one of the highlights within the entire loan system. This data shows that financial institutions are playing an important role in addressing climate change and promoting the development of an environmentally friendly economy.

The report also shows that by the end of 2023, the structure of various RMB loans from Chinese financial institutions displayed a steady growth trend in loans to enterprises and public institutions, especially with medium- and long-term loans maintaining a high growth rate. At the same time, the growth rate of real estate development loans has slowed down, and the balance of individual housing loans decreased by 1.6%, with a relatively slower increase in household loans.

Looking at the structure of loan directions, financial institutions provided more support to fields such as technological innovation, private small and micro enterprises, and green development. Technology-based small and medium-sized enterprises and high-tech enterprises received significant loan support, reflecting an improvement in the efficiency of financial resource allocation. By the end of 2023, the balance of loans supporting technology-based small and medium-sized enterprises reached 2.45 trillion yuan, with a year-on-year growth of 21.9%, while the balance of loans supporting high-tech enterprises was 13.64 trillion yuan, up 15.3% year-on-year.

In the continual growth of green loans, it is evident that financial institutions are gradually recognizing the importance of sustainable finance, actively participating in efforts to address climate change and environmental challenges. This also lays a solid foundation for the sustainable development of the future economy.

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