The Research On Green Credit's Impact On Commercial Banks' Profitability In China

With the continuous deepening of the process of reform and opening up and the continuous development of the process of financial globalization,China's banking industry has gone further and further away on the road to opening to the outside world.The pace of opening to the outside world has grown bigger and bigger,and it has become increasingly healthy and orderly.go ahead.However,during the 40 years of reform and opening up,China has achieved brilliant economic achievements.Eco-environment problems have also become increasingly serious.The coordinated development of the ecological environment and economy has become an important issue.Under this background,green credit will emerge from time to time.This article focuses on analyzing the impact of "green credit" on the profitability of China's commercial banks,and on the basis of this analysis to provide some help to China's green economy development.Based on the literature review of the relationship between green credit and the profitability of commercial banks and green credit,this paper first defines the concept of green credit and profitability of commercial banks and summarizes the theoretical basis of green credit.Secondly,from the theoretical point of view,it analyzes the internal and external factors that affect the profitability of Chinese commercial banks and the existing problems of green credit in the development of China's banking industry,and analyzes the impact of green credit on the profitability of commercial banks from a theoretical point of view.The results of the experiment establish an empirical model,select the data of 10 banks during the seven years from 2010 to 2016 as the analysis sample,and use the individual random effects model for regression analysis.The empirical analysis results of this paper shows that the scale of green credit of commercial banks has a significant negative correlation with their profitability.Therefore,the most important thing at this stage is to solve the obstacles encountered by the development of green credit in economic development.Improve the contribution of green credit,change the short-term predicament,and pay attention to the long-term benefits brought by green credit.At the end of this paper,based on the combination of theory and practice,we put forward suggestions from several aspects to perfect the green credit business.We firmly believe that the impact of green credit business on the profitability of China's commercial banks will become more and more significant as the government continues to introduce relevant laws,regulations,and policies to promote the optimization of China's economic structure and upgrade the economic growth model.The research methods adopted in this paper are the combination of theoretical analysis and empirical analysis,the combination of qualitative analysis and quantitative analysis,and the comparative analysis to accurately and scientifically study the impact of commercial baanks' green credit scale on their profitability.By adopting these methods Method to get convincing results.First of all,green credit has been developed for many years,but it is still a relatively new topic in our country.Most of the data collected and learned from abroad.This article can enrich the innovation in this field And provide some references for later researchers.Secondly,there are some innovations in the research methods,using the latest banking data and using the panel data model,how to influence the commercialization of green credit based on the combination of theory and evidence Bank profitability to make a scientific argument.