Research On EVA Effect Of Commercial Bank's Green Credit

Environmental problems such as environmental pollution,resource depletion,and ecological imbalances have now risen to global economic and political issues,and are related to human survival and social development.National governments,international organizations,and academic institutions have begun to explore the relationship between economic development and environmental quality in order to achieve sustainable economic development.Green credit is a universal environmental protection measure in the international banking industry.Banks strengthen the environmental protection review of construction projects in credit grants,support environmental protection and energy conservation projects,and promote the financial industry to follow a sustainable development path.China's green credit policy has played an active role in accelerating the technological upgrading of enterprises and promoting the adjustment of industrial structure.It has also played an important role in promoting the transformation of the economic and social development model.The commercial bank's business objective is to maximize its value.Therefore,whether commercial banks take the initiative in assuming social responsibility and implementing green credit policies mainly depends on the relationship between green credit and commercial bank operating performance.This article first explains the theoretical basis and connotation of green credit from the perspective of sustainable development theory and corporate social responsibility,and elaborates on the theoretical basis of economic value added EVA and the actual use of banking industry.At the same time,according to China's bank EVA calculation model to measure the sample bank's EVA value from 2008 to 2016,combined with commercial bank green credit balance for comparative analysis.Based on the existing research results on the bank's economic performance and environmental performance,the impact mechanism of green credit on bank EVA is analyzed:Green credit can reduce the credit risk and environmental risk of loans,and can exp and the business scope and increase market share.The bank's net profit can enhance the reputation of commercial banks and the public image.According to the results of qualitative analysis,make empirical hypotheses.The article considers the availability of data and selects data from 12listed banks from 2008 to 2016 for panel data analysis.The empirical results show that the green credit business can significantly increase the bank's REUA,indicating that the implementation of green credit by commercial banks can promote their profitability.However,the estimated coefficient values are not significant,and the implementation time of China's green credit policy is short,the system is still not perfect,and the scale of bank's issuance of green credit is relatively small.Therefore,commercial banks should take the initiative to shoulder their social responsibilities,and actively implement green credit,innovate and develop the internal green credit system,and create more value.