Research On The Impact Of Green Credit On The Efficiency Of China's Listed Banks

Today,with serious environmental pollution,green credit has received more and more attention due to its significant role in environmental protection and sustainable development.However,many commercial banks lack sufficient enthusiasm for policy implementation due to lack of awareness of green credit and considerations of their own profitability.In order to more specifically increase the enthusiasm of banks,we need to understand the impact of green credit policy on the development of banks themselves.With the deepening of marketization,bank efficiency has become an important measure of bank competitiveness.At present,few studies have considered the impact of green credit on bank efficiency.Therefore,it is necessary to study their relationship.This paper first reviews the relevant literature both at home and abroad and finds that there is very little direct research on the relationship between green credit and bank efficiency,and no systematic theoretical framework has been formed yet.Secondly,this paper introduces the concepts of green credit and bank efficiency,and analyzes the influencing factors of bank efficiency.Then,this paper theoretically analyzes the impact of green credit on bank efficiency from the perspectives of bank's loan structure and social reputation.Thirdly,this paper studies the development and implementation status of green credit in our country.The results show that the overall development of green credit in our country is relatively fast and its implementation results are also more significant.,but the implementation of different commercial banks is quite different,and it still needs to be improved in the policy system and product innovation.In empirical aspects,this paper selected 16 listed banks as the research object,firstly evaluated the bank efficiency from 2011 to 2016.The results show that China's listed banks mostly are effective in DEA,this also shows that China's listed banks are in a more reasonable state of resource allocation.Through the analysis of non-DEA effective decision-making units,we can see that scale invalidation is the main factor that causes the non-DEA effectiveness of listed banks in China.Judging from returns to scale,joint-stock and city commercial banks' returns to scale have been increasing or not changing,while state-owned banks had basically entered the stage of diminishing returns to scale in 2015 or 2016,which means state-owned banks should increase bank efficiency by reducing their size.Secondly this paper respectively uses green credit ratio and green reputation as explanatory variables,bank technical efficiency as explained variable,asset size,equity ratio,non-performing loan ratio,and capital adequacy ratio as control variables to construct two panel regression models,and the regression analysis of the relationship between green credit and bank efficiency was conducted using the panel data of 16 listed banks in China from 2011 to 2016.The empirical result shows that the improvement of green reputation has positive impact on the efficiency of banks,but the increase in the ratio of green credit will lead to decrease in bank efficiency.This article believes that the reason why the impact of green credit on the efficiency of listed banks in China is not entirely positive is mainly due to the constraints of current conditions,including the lack of a sound green credit policy in China and commercial banks have not yet found a profit model for green credit business.Finally,this paper summarizes the research conclusions of the full text,and proposes corresponding policy recommendations from three aspects: improving the green credit policy,increasing the profitability of commercial bank in green credit business,and give full play to the green reputation mechanism.