A Study On The Impact Of Green Credit Of Banks On Competitiveness

Commercial banks are profit-seeking.However,they should not only pursue profit maximization,but also pay attention to their social responsibilities.Banks are responsible for environmental protection,which can be fulfilled by issuing green credit.However,the development of green credit is still immature.It is worth studying how the increase of capital investment in green environmental protection projects will affect the competitiveness of commercial banks.First of all,this thesis studies the existing literature at home and abroad in order to lay a certain theoretical foundation for the following research.Secondly,15 sample banks are selected.According to the financial data of the banks from 2008 to 2020,empirical analysis is made on the impact of green credit on the competitiveness of commercial banks.In the empirical analysis of commercial bank competitiveness measurement,the first is to use the principal component analysis method,respectively from the commercial bank profitability,liquidity,security,growth and size of five levels as indicators to reflect the competitiveness of commercial banks,through the calculation of the competitiveness of the selected 15 banks;Then the competitiveness of commercial banks measured above is taken as the explanatory variable in this study,the proportion of green credit issued by commercial banks is taken as the explanatory variable,the benchmark regression between green credit issued by commercial banks and competitiveness is carried out,then the competitiveness of banks is calculated by entropy method,the robustness test of the above regression is carried out again,and the endogeneity test is carried out by using the selected tool variable,which illustrates the reliability of the model;Then,taking bank credit supply and bank risk as intermediate variables respectively,a linear regression is conducted to test the intermediate effect between green credit and bank competitiveness.Next,the bank political level is introduced as a regulating variable to test whether the political level has a moderating effect on the mediating effect between bank credit supply and bank risk.The conclusion is that green credit will reduce the overall competitiveness of banks,increase the competitiveness of large state-owned banks and reduce the competitiveness of joint-stock banks.For banks as a whole,green credit reduces the supply of bank credit,thus reducing the competitiveness of banks,and green credit increases the risks of banks,but whether the risks of banks play an intermediary role is not significant.Banks are divided into large state-owned banks and joint-stock banks,and it is found that green credit can improve their competitiveness by increasing the credit supply of large state-owned banks and significantly reducing bank risks.However,green credit reduces the credit supply of joint-stock banks,but whether the intermediary effect is exerted is not significant,but it will significantly increase the bank risk and reduce its competitiveness.The innovation of this thesis is to take bank credit supply and bank risk as intermediary variables,and analyze the above intermediary effects from large state-owned banks and joint-stock banks respectively,in order to enrich the research results.The disadvantages are that there are many factors that affect the competitiveness of banks,the standards are not uniform,and the selected samples are limited.The model regression analysis on behalf of the data of the whole banking industry in China is not rigorous enough.