Promoting Honest Lending

Promoting Honest Lending
Promoting Honest Lending

Underlying Principles

Taipei Fubon Bank establishes sustainability risk management framework and credit risk management policy, and create credit review procedures and loan oversight mechanisms to strengthen asset quality, solidify the Bank’s business development, support clients’ business operations, and encourage environmental and industrial sustainability and good CSR practices.

Establishment of Working Teams

Fubon Financial Holdings established the Honest Lending Working Group under the ESG Task Force’s Responsible Finance Team (Lending). The group’s members are drawn mainly from the Credit Department – Institutional Banking, Credit Department - Retail Banking, and Credit Card Department, but senior executives are also appointed to take part. The group is responsible for compiling information on the responsible lending practices of related units and regularly reporting their findings to the ESG Task Force.

Formulating Effective Management Policies

Taipei Fubon Bank’s credit business aims at supporting Taiwan’s economic development and providing financing and other financial services to companies and individuals in line with existing laws and norms. The Bank has put in place credit risk management policies and related rules and procedures and set up a credit risk management organization and process to monitor changes in credit risk and ensure that such risk remains within an acceptable range.

Fubon Financial Holdings has long been committed to sustainability and established a "Fubon ESG Visioning Project" with that goal in mind. The initiative came as the United Nations was urging countries to control greenhouse gas emissions to mitigate global warming, and environmental and social issues were becoming increasingly important to society and institutional investors. The project serves as the basis for Taipei Fubon Bank’s sustainability risk management framework, which cover all credit clients and lay out ways to identify and assess environmental and social risks involving environmental protection, climate change, human rights issues, and CSR practices. Guidelines based on the Equator Principles have also been adopted and further efforts will be made in the future to strengthen the system based on global trends in sustainable lending.

Taipei Fubon Bank formally adopts the Equator Principles on Dec. 4, 2017, and the responsible finance team (Lending) accordingly formulated related internal guidelines that were completed and announced in 2018. Related training programs ensured that Equator Principles compliance became firmly embedded in the Bank’s credit processes. The Bank has also benefited from taking part in international sustainability assessments by DJSI, MSCI ESG Leaders Indexes and the FTSE4Good by incorporating comments from those organizations in revisions to sustainability risk management framework. In 2018, climate change and human rights risk evaluations were added to sustainability risk assessments, harnessing the positive energy of the financial sector in raising awareness of the two issues among bank customers.