Bangkok, July 20 – Government Savings Bank aims to use ESG to push social banks after helping society over 55,400 million baht by using the ESG score as a loan condition.
Mr. Withai Rattanakorn, President of the Government Savings Bank, revealed that in the past, the Government Savings Bank has focused on using the ESG concept as a business framework. Aims to help alleviate poverty Reduce inequality in society, able to create a Social Impact, estimated at over 55,400 million baht, hoping to bring about many changes to the environment, society and good governance. Support the transition to a low-carbon economy Through the launch of financial products that drive environmental stewardship, such as GSB for BCG Economy loans, Green Biz loans, Green Home Loan and GSB Go Green personal loans.
Including the distribution of ESG Bonds, which has the market share of 1st in government debt securities and 1 in 10 of private sector debt securities, amounting to 20,000 million baht; Reforestation project to offset/reduce greenhouse gas emissions Community Waste Bank project in collaboration with UNDP Blue crab bank project to promote sustainable fisheries
Recently, the bank requires the use of ESG Score as a criterion for granting credit to large corporate customers with a loan amount of 500 million baht or more. For customers with very good ESG scores, the bank will reduce loan interest rates or increase their credit limit. For any individual whose ESG Score is lower than 2, the bank reserves the right not to consider lending first. This is the first time in the banking business that the ESG Score has been seriously used as a criterion for lending consideration.
In addition, the Government Savings Bank is preparing to raise the level of environmental performance according to the official GSB Net Zero Target. Set a goal to reduce greenhouse gas emissions by more than 50% by 2030 and to zero by 2050. with the aim of helping household debt and to help reduce the interest burden for grassroots customers in 3 dimensions: 1) creating opportunities to access financial sources in the system charge low interest Helping more than 3.7 million people, with 3.2 million people having no access to financial resources in the system due to low credit. More than 48,000 SMEs entrepreneurs whose businesses have been affected by COVID-19 have received more than 250 billion baht in liquidity to support their businesses and rehabilitate their businesses.
As for the second dimension) the restructuring of fair market interest rates. through entering into the business to create competition in the mortgage loan market This can reduce the interest rate structure of this business to 16-18% at present, including lending to SMEs with money that allows customers to use land as collateral for loan applications. Considered successful, leading to a joint venture to establish a company with limited funds, granting loans to help SMEs entrepreneurs access to funding sources of more than 25,000 million baht. It has been able to develop vocational skills for more than 300,000 people, provided funds for more than 140,000 jobs, and created sales channels for 25,000 stores through the activities of the Yuwaphat Rak Tin project. Government Savings Project Occupational career building for the community, etc.
The Government Savings Bank has also reduced the organization’s budget by almost 25% per year. In 2023, the budget has been reduced by up to 9,800 million baht per year in order to use the budget economically and worthwhile. There is also a complete adjustment of the procurement process. To achieve fairness and transparency in doing business. As a result, general reserves have been increased by more than 46,000 million baht in just 3 years, as well as creating a moral culture in the organization. Campaign to promote anti-corruption and transparency in operations The Bank received the highest level of ITA evaluation in 2022 for four consecutive years.
For the 2023 operating results in the six-month period as of June 30, 2023, the Bank had a net profit of 17,344 million baht, total loans of 2.35 trillion baht, total deposits of 2.68 trillion baht and total assets of 3.16 trillion baht. – Thai News Agency
Source: Thai News Agency