Environmental companies to establish green bank

Listed environmental companies will establish a private joint-stock bank, China Securities Journal reported on Monday.

The China Environment Chamber of Commerce and Sound Group, a Beijing-based environmental technology development company, announced the development at a forum on Sunday.

The bank will be established by eight to 10 listed environmental companies with 5 billion yuan to 6 billion yuan ($823 million to $988 million) in registered capital, according to the plan.

It aims to realize more than 1 billion yuan in net profit in 2019 with 8 percent in capital adequacy ratio, and non-performing loans at 2.5 percent. It aims to have more than 130 billion yuan in deposits and more than 80 billion yuan in loans.

"Environmental protection companies in public-private partnerships have been experiencing great difficulties in financing," said Wen Yibo, chairman of China Environment Chamber of Commerce.

"The green bank will be able to offer credit products suitable to the needs of environmental companies."

The bank could be either established by the companies themselves, or through negotiation with local governments to purchase a local city commercial bank, Wen added.