Research On The Impact Of Green Credit On Credit Risks Of Chinese Commercial Banks

China’s economy has made great achievements since the reform and opening up,but the development mode of sacrificing environment for GDP growth has brought about a series of environmental problems.The development mode of high input,high consumption and high pollution has seriously damaged China’s ecological environment.As the main financial institutions,commercial banks can control the flow of capital through green credit,curb the development of "two high and leftover" enterprises,and at the same time help the innovation of green industry.The credit risk of commercial banks is an important factor affecting the enthusiasm of commercial banks to carry out green credit business.In recent years,with the rising balance of green loans,the proportion of green credit in the total loan is also increasing.It is of great practical significance to study the impact of green credit on the credit risk of commercial banks.This paper first introduces the main concepts of commercial bank credit risk and green credit,and then introduces the basic theories of environmental risk theory,sustainable development theory,corporate social responsibility theory and information asymmetry theory.On the basis of these theories,the influence mechanism of green credit on commercial bank credit risk is analyzed,and the scale heterogeneity of commercial banks is further analyzed.Finally,the relevant research hypothesis is proposed.It also describes the development status of green credit from the aspects of green credit policy,scale,bank credit risk control,and discusses the problems existing in the development process of green credit.In this paper,the green credit data and financial data of 23 Chinese commercial banks from 2007 to 2020 are selected to verify the above research hypothesis through empirical analysis.After the Hausmann test,the fixed effect model is adopted for regression,and the empirical analysis is carried out from the perspective of scale heterogeneity of commercial banks.In this paper,non-performing loan ratio is used to replace the risk variable,and non-interest income is used to measure the risk dispersion effect.Through empirical verification and analysis,this study finds that expanding green credit can reduce the non-performing loan ratio of commercial banks,that is,green credit can reduce the credit risk of commercial banks.Expanding the scale of green credit can increase non-interest income,improve the operation capacity of banks,and have the role of risk diversification.The scale of banks’ own assets varies greatly,and green credit has a more obvious impact on the credit risk of large commercial banks.Finally,from the national level and the bank level,this paper puts forward some feasible suggestions on improving the green credit related policies,establishing a sound incentive and subsidy mechanism,and strengthening the construction of green credit professionals.