Research On The Impact Of Green Credit On Total Factor Productivity Of Commercial Banks

In recent decades,China’s economy has made significant progress,mainly relying on the rapid promotion of industrialization and urbanization.This extensive development mode leads to rapid economic development,while environmental problems are increasingly emerging.Green credit is a loan method launched from the perspective of environmental protection.It requires commercial banks to include the impact of enterprises on the environment into the assessment scope when issuing loans,give preferential loan interest rates to qualified low pollution enterprises,and reduce the loan scale of "two high and one surplus" industries,which can not only curb the expansion of polluting enterprises,but also promote their transformation to environment-friendly enterprises and effectively improve environmental problems.With the increasing proportion of green credit in commercial banks,people gradually pay attention to the impact of green credit on the operating efficiency of commercial banks.This paper focuses on the impact of green credit on the total factor productivity of commercial banks.Firstly,this paper introduces the development process,development status,existing problems and related theories of domestic green credit.Secondly,15 representative commercial banks including Ping An Bank and Bank of Ningbo are selected as the research object.The DEA Malmquist index model is used to measure the total factor productivity and its decomposition index of the sample commercial banks,and analyze and evaluate the overall total factor productivity of the sample commercial banks,Finally,a panel data model is constructed to empirically study the impact of green credit on the total factor productivity of commercial banks.The results show that: first,the total factor productivity level of the sample commercial banks is high during the sample period,and the asset allocation level of China’s banking industry is excellent.Second,through empirical analysis,it is found that green credit has a beneficial impact on the total factor productivity of commercial banks through scale effect.Based on the research conclusions,combined with the development status and existing problems of domestic green credit,this paper puts forward some suggestions at the bank level and the government level.The suggestions put forward at the bank level include actively developing green credit business,innovating green credit products and services,cultivating green credit related talents and improving the risk control ability of green credit.The suggestions put forward at the government level include improving green credit laws and regulations We will improve the green credit mechanism of commercial banks and increase government subsidies for green credit products.