The Impact Of Developing Green Financial Business On The Profitability Of Commercial Banks In China Empirical Research

Under the concept of governing the country with green development in China,building a green financial system has been raised to the height of national strategy.It can be seen that environmental problems have aroused the attention of the whole country,and we can no longer get economic benefits at the expense of overdraft environment.Therefore,it is imperative for economic transformation and development to open a new normal of economic development.In recent years,relevant government agencies in China have also promulgated policy documents on environmental protection and green finance.Advocating supporting environmental protection enterprises,restricting the development of "two high and one surplus" enterprises,and putting forward some guiding suggestions for banks and other financial institutions.In this context,as the core hub of economic development,commercial banks should not only play an active role in guiding funds and optimizing the allocation of resources,but also adapt to the situation to develop green financial business,and change their business model to environmental protection.Whether banks can benefit themselves and bring economic benefits by developing green financial business is the focus of this paper.By using the method of combining theory with empirical analysis,this paper chooses the panel data of 15 commercial banks listed on the A shares in China from 2010 to 2017 to study the influence mechanism of the development of green financial business on their profitability,which is of great significance to the sustainable development of commercial banks in China.The main conclusions of this paper are as follows :(1)green finance business will increase Banks' intermediate income and expand business channels;(2)green finance business will improve the credit structure and reasonably allocate social funds;(3)green finance business will enhance its social reputation and create a good image of actively assuming social responsibilities;(4)green financial business will promote banks to improve their cost management ability,but it will also bring some unfavorable factors in the development,which will increase the operating costs and risks of banks.(5)the development of green finance by commercial Banks will improve their profitability,contribute to the sustainable development of Banks,and enhance social benefits.Finally,according to the research results,this paper puts forward relevant policy recommendations from the government and banks themselves.The government shouldimprove the supervision mechanism,establish the green financial laws and regulations system,strengthen publicity,etc.The bank should innovate the green financial business,train relevant talents,etc.The innovation of this paper is mainly reflected in the selection of empirical indicators.From the perspective of comprehensive consideration of asset returns and commercial bank development,the ROA and ZSCORE indicators are selected to measure the profitability of banks comprehensively.And the empirical results also show the superiority and accuracy of the two indicators.