The Impact Of Green Credit On The Performance Of Commercial Banks

After General Secretary Xi Jinping proposed the “double carbon”target at the seventy-fifth session of the United Nations General Assembly,the realization of the "double carbon" target has become a guideline and a grip for all the work of green finance.Green credit has become the strategic core of China’s economic development.The commercial banks of our country have realized the great effect of green credit.The government and financial regulators have proposed many documents that are the basis for banks to grant green credit.Using literature research method and empirical analysis method,this paper firstly explains the background and meaning of the green credit,summarizes and concludes the domestic and foreign literature to analyze the research direction of this paper.The concepts and theories about green credit are sorted out to lay a certain foundation for the empirical study.The development of commercial banks,the status of green credit issuance and the current situation of commercial banks’ business performance are demonstrated.Secondly,the fixed-effect model and random-effect model are used to analyze the panel data.State-owned banks and joint-stock banks in the sample were screened out.The overall analysis of banks and the comparative analysis of different banks were conducted.To investigate how the development of green credit affects stateowned banks and joint-stock banks differently.The model results show that green credit reduces the profitability of commercial banks and reduces the profitability of stateowned commercial banks even more.The empirical results show that green reputation does not contribute to bank performance,and the negative effect of green reputation on joint-stock commercial banks is less than that of state-owned commercial banks.Finally,the article analyzes the problems of banks’ carrying out green credit based on the results of the model study.The paper makes suggestions based on the problems,and these suggestions lay a good foundation for the development of green credit in the future.