Research On The Impact Of Green Credit On The Performance Of Commercial Banks In China

China’s economy has gained rapid development because of the reform and opening up so that "China" has become a famous name in the world.But the rude way of development has caused serious environmental circumstance.It is high time limited "two high and leftover" enterprises ’ production and reduce destroy to the environment.The promulgation of the“ Opinions ” in 2007 emphasized the importance of using credit measures to protect the environment.Then green credit emerged at the historic moment.The distinct advantage of asset disposition of commercial banks can lead the capital flow through differentiated pricing methods,promote the "two high and surplus" enterprises’ loans in traditional credit to favor more eco-friendly projects,and play a crucial part of financial means in advancing environmental quality.This thesis primarily combed the domestic and international researches interrelated to green credit and commercial bank operating performance,and introduces the overall performance of green credit in banks in China and the existing problems.Then based the "three principles" of merchant banks operation,it explains how green credit act on bank’s safety,profitability and liquidity and then affects business performance.When conduct empirical analysis,this article uses main analysis to reduce the dimensionality of eight financial indicators representing the "Three Principles" of banks,and finally calculates the score of business performance,which is taken as the explained variable in the regression model.Then a regression model is constructed by using the data of seventeen banks from 2009 to 2019 through the fixed effect model.Different from previous studies by scholars,this research discovers that green credit is negatively correlated with the business performance of banks,which may be related to short development time of green credit in China.Then it is found that green credit has a significant positive impact on the operating performance of non-state-owned banks,while has no obvious influence on state-owned banks through the heterogeneity of property rights experiment.Finally,in allusion to the restrictive factors in the development of green credit in China’s banks,referring to the empirical results,I would like to bring forward opinions for banks to effectively implement credit policy.