Green Credit And Commercial Banks

Economic growth should not always be accompanied by consumption of the environment.After the two industrial revolutions,the economic growth of human society is accompanied by the sharp increase in the use of fossil energy and the intensification of pollutant emissions.With the development of Economy and society,people gradually noticed the increasingly serious environmental problems and began to seek solutions.In 1972,the United Nations convened the first conference on the Human Environment,at which relevant issues were discussed.This international environmental conference has aroused the attention of all countries.Since then,countries around the world on environmental protection,promoting the harmonious development of human and nature increasingly frequent exchanges,green development,sustainable development has gradually developed into a consensus of development.The development of green finance is an important link to realize green and sustainable development of economy and an inevitable choice to promote the transformation of economic structure.The development of green finance can not be separated from Commercial Bank.Commercial banks are the capital hub of Economic Society,and their active role will help to promote the optimal allocation of resources and guide the economy to green and sustainable development.For the macro-economy,the development of green finance is conducive to the sustainable development of the national economy,and for the commercial banks,the promotion of green finance is conducive to the enhancement of the risk-avoiding ability and the sustainable development ability of the commercial banks,it is beneficial to improve the bank’s reputation and enhance its competitiveness.Since 2007,our government has issued a series of laws and regulations to guide and regulate the development of green finance,but also for commercial banks to provide more policy support.In this context,China’s commercial banks continue to develop green credit,credit scale is increasing,green finance related to the impact of research is also expanding.On the basis of this,this paper adopts a Quantitative Research Approach,through empirical analysis of the relationship between Green Credit and financial performance of commercial banks.Firstly,this paper briefly introduces the concepts and theories related to Green Credit and Commercial Bank,secondly,it combs the theories related to Green Credit and Commercial Bank financial performance.Next,based on the four commonly used indicators of commercial banks’operating conditions,profitability,security,liquidity and growth,this paper makes a theoretical analysis on the relationship between Green Credit and financial performance of commercial banks.It is believed that the implementation of green finance and the development of green credit business of commercial banks have a positive effect on their financial performance.On this basis,according to the four directions of thinking,this paper selects 13 more appropriate accounting indicators to build a comprehensive financial performance system of commercial banks.The paper takes the green credit ratio(GLR)of commercial banks as the index to measure the implementation effect of green credit,and takes the assets scale and GDP of commercial banks as the control variables to construct a complete variable system.This paper selects the data of 13 commercial banks from 2010 to 2018 for empirical analysis.Firstly,the comprehensive financial performance score of commercial banks is calculated by SPSS,and several explanatory variables of several financial performance indicators are grouped into one.The regression analysis shows that in a relatively short period of time,the implementation of green credit business by commercial banks can bring a positive impact on their financial performance,but the impact is relatively small,from the point of view of the region,there are still some differences in this effect,and the reasons for the existence of this gap are analyzed.Finally,this paper summarizes the conclusions of the previous analysis of commercial banks on the development of green credit made recommendations.The suggestions are put forward from two aspects:the external policy support at macro level and the efforts of commercial banks at micro level.