The Effects Of The Green Credit On The Core Competitiveness Of Commercial Banks In China

Since the reform and opening up, China’s economy boom based on extensive economic has brought the environment deteriorating severer. Related laws and regulations about environment protection established recent years show the concern of the government, but produce very little effect. However, the emerging of green credit brings a new conditioner to promote the energy saving and emission reduction in manufacturing industry. Green credit implement is different from commercial banks to commercial banks, and this dissertation will focus on this topic.The relationship between green credit and core competitiveness of commercial banks is not clear till now based on the previous researches on this topic by domestic and international researchers, so this topic is worth keeping research. Moreover, based on the corporate social responsibility theory and banking environment risk management theory, green credit has positive effects on the risk management in commercial banks. So Green reputation produced by green credit promotes the core competitiveness of commercial banks.16 listed commercial bank in China have been selected as samples and panel data has been construct based on social responsibility report, news database, Wind and Ifind from 2010 to 2014. Mainly based on factor analysis, the result shows that the green credit ratio and green reputation these two measurements of results of green credit have significant positive effects on core competitiveness of commercial banks. In addition, the effect from green credit has hysteresis quality which means that only the continual implementation of green credit brings the positive effects on core competitiveness.At last, the promotion of green credit suggestions for government and commercial banks have been separated listed which produce the core competitiveness of commercial banks based on status in China.