The Impact Of Green Finance On The Performance Of China’s Banking Industry

Environment problem has become an increasingly serious problem in the world.In order to achieve a balance between economic and environment goals,each country starts to develop green economic.Enterprises are also on the way to green.However,the transformation process needs much investment.Many enterprises are not able to get transformed because of lacking of money,including financial industry.The operation and benefits will get losses in the transformation.It needs to be studied deeply in academic circles and continues to explore and improve that whether develop green finance can improve the performance of banks or not.Either from the literature analysis of this article or from life,we can perceive the changes in the environment.People feel the crisis and start environmental conservation,but the process requires a lot of cost,not only time consuming,but also no clear research proof.The development of a green economy by exporting enterprises will bring wealth to themselves,so it is impossible to persuade most enterprises to follow suit.Therefore,governments of various countries have started with small-scale changes,hoping to protect the environment while also taking into account economic growth.Every country has its own green economic development.It can be seen from the examples of countries in this article.Many of them are publicly supported by the government,formulating laws and regulations to force or regulate enterprises to carry out green activities,This study seeks to find out the impact of composing CSR report and publicly comply with the Equator Principle on corporation value and profit of financial industry.Financial data of 22 banks are collected to investigate the relationship between green loans and corporate value and benefits.The results of this study found that issuing a CSR report does not have effective power to change the value and profit of the financial industry.It is related to the current state of China’s financial industry.Traditional financial industry activities will not cause environmental harm,so when a financial company compiles a CSR report The book(t-Value=0.133)will not affect investors’ feelings too much,and the part that publicly abides by the Equator Principles has had good results(t-Value=2.02).At present,there are only less than 100 banks in the world that publicly abide by the Equator Principles.Therefore,when banks publicly announce their compliance with this principle,it can greatly increase the visibility of your company and attract many environmentally conscious companies to invest and cooperate,thereby increasing the value and profit of your company.On the government side,in recent years,various industries have been subsidized.As long as the industry has green economic activities,they can apply for certain monetary subsidies.Because the formulation of laws is relatively large-scale and time-consuming,there is currently no complete set of laws and regulations.It can be executed,but it is also moving step by step towards the concept of sustainable management.After progressing the regression model analysis,we can find that compose CSR Report make no such association between corporation value and profit of financing industry.The reason is the way to compose CSR report by financing industry in Taiwan,and there is no uniform standard resulting in a low correlation between both.The part of publicly comply with the Equator Principle has an obvious association.As Equator Bank can indeed increase profit and enhance corporation value to Banking industry,so they can hardly move forward to comply with Equator Principle.