Study On The Profitability Of Commercial Banks In China Under Green Finance

Since the first United Nations Conference on the Human Environment in the 1970 s,environmental issues have aroused the common concern and active response from all countries in the world.Facing the increasingly severe resource consumption and environmental pollution,the development of green finance is the inevitable choice to promote the transformation of economic structure and promote sustainable economic development.Commercial banks as a social credit and capital hub,play an important role in optimizing the allocation of resources,and guide the green transformation of the economy.The development of green finance is not only conducive to improving China’s ecological environment,support the development of national economy,but also conducive to commercial banks to avoid policy risks,improve the social image,to achieve their own sustainable development.In China,green finance development more and more attention,government departments have introduced a series of policy documents,to guide commercial banks to carry out green credit business.From the practice point of view,the scale of China’s green credit loans continue to grow,market and policy system was initially established,and achieved certain economic and social benefits.However,China’s green finance in the policy system,incentive constraints,and risk control are still shortcomings.Therefore,research on China’s green finance development status and constraints,have great significance to implement the green financial policy,improve the green financial mechanism,to achieve green economic transformation.This paper first discusses the basic connotation of green finance,on the basis of an introduction to green financial instruments and theories,elaborated the influence of green finance on commercial banks by means of qualitative and quantitative analysis.Describes the development of green finance in China,and lists some practices of commercial banks,and then found China’s green finance development process problems.Into the empirical stage,combine with the actual situation to select the relevant indicators.The use of China’s 14 listed commercial banks in 2010-2015 panel data,construction of individual fixed effect regression model,studied the relationship between the implementation of green credit and its business performance.According to the results of the study,the green credit ratio is negatively correlated with the profitability of commercial banks in short term.As China’s green finance started late,the implementation of green credit policy means a significant reduction in loans to polluting enterprises,while increasing the bank’s operational management costs,thereby reducing the profitability of commercial banks.According to the analysis from the macro,medium and micro three levels targeted to promote the development of green finance policy recommendations,commercial banks to take social responsibility,to take effective measures to further promote the development of China’s green credit market,to further improve China’s green financial system has important practical significance.