| Today,the Chinese economy is entering a period of sustainable and sound development.Developing environmental protection economy has become the effective way to internalize the negative externalities of economic growth.Facing the urgent demand for financing of green industry,Chinese government deeply attaches the critical role to green bonds in the development of green economy.As an important issuer and major issuing place of green bonds,commercial banks have also received strong support from the government and extensive attention from market participants in recent years.This paper studied the impact of issuing the green bond on commercial banks’ profitability.Firstly,it systematically introduced the literature review and empirical research on green bonds and commercial banks’ profitability at home and abroad.Then,by adopting the normative research method,the related concepts and theoretical basis of green bonds,the current situation of domestic green bond market and the development potential of commercial banks’ green bond business are expounded in depth.Finally,starting from whether to issue green bonds,we selected 36 Chinese commercial banks and analyzed the differences on the profitability of commercial banks.In the part of theoretical research,it firstly makes an in-depth review of some relevant literatures on green bonds and profitability of commercial banks,introduces the relevant concepts of green bonds and profitability,then it focuses on the theoretical mechanism of the effect of green bond issuance on the profitability of commercial banks.As a part of the real analysis,the development process of green bond in China are outlined,and the development situation of green bond of commercial bank is shown with the help of data statistics.As a part of the empirical analysis,we conducted an empirical study of the relationship between the issuance of green bonds and the profitability of commercial banks using the quarterly settlement data of 36 listed commercial banks from 2016 to 2020.First,regression analysis is carried out on the overall sample of commercial banks.Then,the sub samples are divided according to the types of commercial banks,and the sub samples are analyzed by regression.The results show that:（1）from the perspective of commercial banks as a whole,issuing green bonds can improve the profitability of commercial banks.Second,the issue of green bonds has a differentiated impact on the profitability of different commercial banks;（2）for operating commercial banks and stock banks,the operation of innovative financing instruments can improve their social reputation and alleviate the problem of maturity mismatch of assets and liabilities;（3）the revenue they create is higher than the cost,thus significantly improving their profitability and enhancing their competitiveness.However,for small medium commercial banks,they lack the corresponding capital and human resources to issue green bonds and have insufficient experience to deal with the business risks brought by green bonds,which in the short term weakens their profitability.Overall,green bonds will play an increasingly important role in the development of Chinese green industry in the future.Moreover,from the empirical results,green bonds are not only beneficial to optimizing the environment by investing capital in green industry,but also have more economic value.This confirms the development potential of green bonds business in commercial banks.Finally,some proposals were made for the development of the green bond business of commercial banks based on the conclusion of the study.For the government,the legal of green bonds should be improved and unified,the incentive mechanism of green credit should be constantly improved,and the timely information communication mechanism should be established.This paper also advanced some suggestions,such as strengthening risk and cost control ability,innovating business cooperation mechanism,establishing effective information communication mechanism and so on. |
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