A Study On The Impact Of Green Credit On The Profitability Of Commercial Banks

Since the twenty-first century, green economy, circular economy has gradually become the focus of economic development. In recent years, the community pays more attention to the role of the financial community in environmental protection. As the economic lifeline of the financial sector played an important role in the green revolution, the banking sector will form a green credit demand. But with the improvement of economic growth, the contradiction between environment and economic development are also beginning to gradually appear, in order to alleviate this contradiction green credit business of commercial banks have come into being. International financial sector has recognized the social responsibility and corporate responsibility Bank, and recognize the financial means should be adopted to control the flow of funds to encourage the smooth flow of funds green, green, clean energy and other industries, and on this basis, the formation of customary international banking operations-the Equator Principles. On the basis of the Equator Principles, global Green financial development is very rapid, low-carbon economy, circular economy, green finance, credit and other green concepts have started to enter people’s vision, academics are also beginning to support the financial sector depth study of the behavior of the green industry and the impact. With the continuous development of green credit and commercial banks compete deepening impact of green credit profitability of commercial banks became the focus of China’s banking and government attention.In this paper, a green credit and bank profitability for the study, Describes the development of green credit, and the definition of bank profitability situation, influencing factors. Theoretical analysis of the factors that green credit affect profitability of commercial banks, and the empirical analysis using panel data model. In this paper, a representative of ten commercial banks 2006-2014 data Empirical Analysis of green credit on bank profitability and summary. Finally, based on the results of empirical analysis and combined with China’s actual situation of China’s development of green credit business banking offer some feasible suggestions. I hope through the implementation of the above recommendations and measures to help China’s financial industry to develop green credit business, which will effectively promote the development of China’s green economy, and ultimately to achieve sustainable growth of economic development.