Study On The Impact Of Green Credit On The Operational Performance Of Listed Commercial Banks

In recent years,with the rapid development of economy,environmental pollution,resource exhaustion and ecological imbalance etc.environmental problems have become increasingly acute and been a bottleneck which restricted the economic sustainable development of our country.For banking industry,which is the core component of our economic system,the gradual deterioration of ecological environment increases banks' operation risk,reduce the profit margin and hamper the sustainable development of it.Based on referring to foreign experiences,our country persistently seeks new paths which balance the sustainable development of banking industry and environmental protection to alleviate this problem.Under this background,green credit has been created and developed in China.Green credit requires banks to take more social responsibilities and take environment related information into account during the process of credit examining.This kind of intentional funds-flow guidance certainly impacts the operational performance of banks.However,the issue that how does green credit influence banks' operational performance remains to be explored in our country.Employing the data of Chinese listed commercial banks and referring to the publications of existing research,this paper conducts specific analysis on the correlation between green credit and banks' operational performance.First of all,the paper reviews and summarizes related domestic and international literatures in green credit and operational performance fields,based on which I conduct theoretical analysis on the correlation between green credit and banks' operational performance.It shows that the majorization of credit structure and reputation generated from the implementing of green credit policy can improve banks' operational performance and increase their profits.Next,I detail the present situation of commercial banks' green credit business from the overall perspective and individual banks' specific perspective respectively.It can be concluded that the green credit business is promising but still has many deficiencies that need to be improved in China.Further,I conduct empirical analysis on the correlation between green credit and banks' operational performance.Through regression analysis on the panel data of 15 listed commercial banks from 2011 to 2015,I test the effect of banks' green credit ratio on their operational performance.The result shows that green credit ratio has a positive effect on operational performance,which provides empirical support for banks to promote green credit business and disclosure related information.Additionally,in order to figure out whether banks' property right and listed or not characters have effect on the correlation between green credit and operational performance,I conduct state-owned listed banks vs.non-state-owned listed banks and listed banks vs.unlisted banks comparative regression analysis.The outcome shows that the coefficient of green credit ratio in state-owned model is larger and more significant than that in non-state-owned model and the coefficient of green credit ratio in unlisted model is larger and more significant than that in listed model.Finally,based on the empirical results and actual conditions of China,the paper put forward some feasible suggestions on the development of green credit business and improvement of commercial banks' operational performance.I hope that the implementation of these suggestions and measures can facilitate the operation of commercial banks(fulfill their social responsibility and improve performance at the same time).