Research On Green Finance Development Of Commercial Banks

With the rapid development of China’s economy,environmental pollution and waste of resources have become increasingly prominent,and environmental protection has received increasing attention from people.The concepts of "green mountains and green mountains are golden mountains and silver mountains" have become more and more popular,which requires social entities to develop the economy In the process,we pay attention to the impact of our activities on the environment,and promote the transition from traditional economy to green economy in our country through actions.The Party’s "Thirteenth Five-Year Plan" has clearly required China to accelerate the development of green credit and green bonds in order to establish a sound green financial system.The 19 th National Congress of the CPC further requested that China should accelerate the development of green finance and increase the scale of industries such as energy conservation and environmental protection and green manufacturing.As an important hub for adjusting the national economy,business has played a significant role in promoting sustainable development of society through the development of green finance.However,at present,green finance still accounts for a small proportion of the total business scale of commercial banks.The enthusiasm of commercial banks to develop green finance is still not high.The main problems include mismatched costs and benefits,lack of incentive systems,imperfect laws and regulations,and green finance.The performance appraisal system is not yet complete,etc.,and the momentum for green finance development continues to be insufficient.This article takes Industrial Bank as the research object.First,it summarizes relevant literature and materials,and refines the theories related to green finance,which lays a foundation for subsequent research.Secondly,it analyzes the development status and existing problems of Industrial Bank’s green finance,and further explores the deep causes of problems in Industrial Bank’s green finance business.Then it uses the SWOT analysis method and Porter’s five-force analysis method to creatively propose Industrial Bank.The strategy of developing green financial business,and designed the development ideas,development goals,development directions,and development countermeasures of Industrial Bank’s green financial business,and finally put forward specific measures to ensure the development of Industrial Bank’s green financial business.Through research,the following conclusions are drawn: First,the development of green finance by commercial banks is of great significance to the socio-economic,social environment,and the sustainable development of the bank itself.In addition to public welfare,it is helpful to the allocation of socio-economic resources,improve the country’s macro-control capabilities,and Strengthen financial innovation and enhance banks’ ability to respond to risks.Second,Industrial Bank still faces many problems when it comes to green finance,such as cost-benefit mismatch,imperfect incentive system,imperfect legal system,asymmetric information between banks and enterprises,and imperfect green financial performance evaluation system.Issues that need to be improved,such as the rebound of the "two highs and one surplus",the green financial stress test has not yet been carried out,and environmental protection PPP projects need to be strengthened urgently.Third,through SWOT analysis and mixed Porter’s five-force analysis,it is concluded that there is still a lot of room for Industrial Bank’s green financial development.Using its internal advantages and external opportunities,it can design growth-oriented development strategies.At the same time,create a differentiated market competition strategy.Fourth,in response to the problems faced by Industrial Bank in developing green finance,this article puts forward suggestions for establishing tax incentives,differentiated regulatory incentive systems,improving the level of legislation,unifying industry standards,improving information disclosure and market assessment,and establishing an effective green financial performance evaluation system.Also,it was suggested that Industrial Bank should still actively reduce the "two highs and one surplus" loans,implement green financial stress tests,improve the level of environmental protection PPP projects,and ensure competitiveness in the green finance field of commercial banks.