With stricter environmental legislation and the stronger enforcement of environmental violations, the issue about liability of financial institutions to respond to environmental legal risks raise up. On November 27, as part of our study on the environmental legal risk management of Chinese banks and other financial institutions, NRDC’s Senior Attorney David Pettit and the China Environmental Law and Governance team was invited to visited China's Banking and Insurance Regulatory Committee's (CBIRC) office and met with CBIRC and representatives from banks. 

During the meeting, Mr. Pettit delivered a presentation on the framework of U.S. Superfund Law and Resource Conservation and Recovery Act, and relevant lender liability provisions. David analyzed in detail the principles on liabilities of bank holding security interests in polluting enterprises and exemptions. The representatives from the Committee, along with those from all major Chinese banks had a Q&A session to further discuss technical details that help to mitigate environmental risks for financial institutions. NRDC will continue the discussion on this issue with CBIRC and Chinese banks, to support China’s future development of its own framework for China’s situation.