Climate Change Risk Management in Lending Activities of Vietnamese Commercial Banks

Abstract

Climate change risk has been considered one of the major risks in banking operations. The study analyzes the climate change risk management in lending activities at Vietnamese commercial banks. The assessment criteria are built on the climate change risk management framework of the European Central Bank. Semi-structured interviews are conducted with credit risk management managers of 23 commercial banks. The research results show that Vietnamese commercial banks have begun to integrate climate and environmental risks into credit risk management in lending activities. However, banks are approaching climate change risk management from a social responsibility perspective. The climate change risk management framework should be developed, especially in tools, methods and information disclosure.