It is a policy to encourage the businesses to observe the rules and regulations about environmental protection with the leverage of bank credits.
Initiated by the former State Environmental Protection Administration, currently the Ministry of Environmental Protection, and China Banking Regulatory Commission in July, 2007, the policy requires the commercial banks, when reviewing the application for bank credits, to consider whether the applying businesses have followed the environmental rules. The violators have less chance to get the approval, while the green businesses would get favorable treatment in this regard. The policy marks a start for the Central Government to step up the country's environmental protection through market-oriented means.
(Source: China Daily)