Responsible Lending Policy

Environment, Social, and Governance (ESG) challenges have been undermining sustainable development. It is urgent that all stakeholders must adopt “sustainable development approach” and work together to achieve balanced and sustainable development, taking into account economic, social, and environmental dimensions.

As a financial intermediary that allocates funds to businesses and individuals, the Bank is aware that our lending may incur ESG risks and impacts, including climate change. The Bank also realizes that if these risks are not properly managed, they could trigger direct and indirect impacts on the Bank’s reputation and financial performance as well as quality of living and economic stability of community and nationwide. Accordingly, the Bank developed the responsible lending policy to serve as a guideline for our executives and staff in relevant departments, focusing on effective ESG risk management in our credit process to support long-term performance for the Bank as well as the society.
Practical Guidelines
Responsible Lending

  • Perform ESG Know-Your-Customer, including AML/CFT screening, and refrain from providing credit to applicants and activities violating the law, acting against good morals, or severely affecting the environment and society, as stated in the Exclusion List, in order to safeguard against severe and irreversible damage to the environment, the society and the Bank’s reputation and social trust.
  • Provide opportunities for stakeholders to voice their opinions (stakeholder engagement) regarding potential environmental, social, and governance risks and impacts resulting from the Bank’s lending.

Business Lending

  • Prudently assess project finance through a clear and transparent due diligence process that takes into account environmental and social risks and impacts. A monitoring and control mechanism appropriate to risk level is in place to manage risks. Special attention is paid on highly sensitive sectors with high environmental, social, and governance risks or having sensitive issues.
  • Promote and support businesses in alignment with the UN Sustainable Development Goals and transition to a low-carbon economy to help mitigate and adapt to the climate change impacts.

Consumer Lending

  • Carefully consider consumer loan applications by taking into account credit risk and affordability risk which would affect customers’ long-term quality of life. The focus is on vulnerable groups such as low-income individuals, senior citizen and new workers entering the labor market to help prevent them from possessing excessive debt.
  • Promote financial literacy, particularly on financial management and saving, to general public and vulnerable groups to help reduce household debt and credit risk.
Exclusion List
  • Illegal businesses or transactions under laws in host countries
  • Designated person involving in proliferating of weapon of mass destruction i.e. nuclear, biological, chemical or other weapons which cause serious harm to lives of human, animal, plant or environment similar to such weapons e.g. anti-personal land mines and cluster munitions, including means of delivery, component or equipment of such weapons
  • Projects or activities that may cause severe environmental and social impacts, has not established prevention and mitigation measures, and has not engaged with stakeholders in public consultations
  • Projects or activities invading or damaging Mangrove Forests
  • Trading of endangered plant and animal in violation of Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
  • Activities involving human trafficking, forced labor, or illegal child labor

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