Analyze China’s Listed Joint-stock Commercial Bank’ Practice On Green Credit Policy

Experienced rapid development, Chinese banking industry getting to pay more attention on greening their credit business. This paper started with presenting the theoretical basis and practical background of the green credit policy. Using descriptive statistics, correlation and regression analysis as well as other methods to analyze the listed China’s16joint-stock commercial banks’ green credit business with focus on its financial performance impact. Through the analysis, found that, at this stage, the proportion of16bank’ green credit business dose not have linear or other significant correlation with the bank’s bad debt ratio and return on total assets. Meanwhile the proportion of16bank’ green credit business has showed a significant negative correlation with the banks’ cost-income ratio, indicating that the green credit business helps to improve the bank’s financial performance. It also has found16China’s listed commercial banks’ faced issues on their green credit business, include, the green credit business information disclosure mechanism needs to be improved, the green credit business standards is missed, as well as the uneven development of the green credit business innovation. Finally, based on issue analysis, the paper proposed the recommendations on how to improve16banks’ green credit business which include, optimizing the external policy environment like issuing necessary law and regulation, setting up green credit principles and system, leverage motivation of green credit business, and from banking internal mechanism view to improve green credit business management, and promote the green credit product innovation.