Research On The Impact Of Green Credit On The Risk Of Commercial Banks

As an important implement tool of green finance,green credit has played an important role in regulating the national industrial structure and protecting the ecological environment.The development of green credit in China has been more than ten years,but there are still many problems.As the main body of green credit in China,commercial banks are faced with many risk factors because of their inherent vulnerability and operational particularity,so they will consider the impact on their own risk when they carry out green credit business.Therefore,this paper will examine whether the development of green credit is helpful and how to reduce the risk level of commercial banks,and whether there are differences in the impact of the implementation of green credit on the risk of commercial banks.After sorting out the relevant policies of green credit in China,this paper analyzes the current situation of green credit and commercial bank risk in China from various angles.At the same time,the present situation of green credit risk is analyzed with the help of examples,and finds that there is a negative correlation between the development of green credit and the risk level of commercial banks because of the low-risk nature of green credit assets.Then,based on relevant theories,the paper puts forward the impact of green credit on bank risk and the transmission mechanism of green reputation,as well as innovation in which the role of regulation.Combined with the actual situation of China’s banking industry,the assumption that effects of different types of banks are different is made.In the empirical analysis,this paper draws on previous studies of a comprehensive scientific selection of variables,multiple panel regression models are constructed based on four hypotheses,and take the complete data of 16 representative commercial banks in 2010-2020 as the research object.The conclusion of the empirical study are: The green credit agency variable and the bank risk variable are significantly negative correlation,the bank risk variable and its lag item are significantly positive correlation,which indicates that the risk of the commercial bank has the continuity,green credit can optimize the structure of capital allocation,improve the quality of assets,and reduce the risk level directly;Green credit can disperse the risk indirectly by increasing the green reputation of commercial banks;The bank innovation ability has a positive moderating effect on the impact of green credit on bank credit risk;The risk of ordinary joint-stock commercial banks with small scale of green credit is more obviously affected by green credit,and the following banks should expand the scale of green credit in order to enhance the risk-resisting ability,state-owned banks should pay attention to the promotion of innovation ability.Finally,this paper puts forward some suggestions on promoting the development of green credit and controlling the risk level of banks from the perspective of commercial banks themselves.