Research On The Effect Of Green Credit On The Performance Of Commercial Banks In China

Since the reform and opening up,China's economy has developed rapidly,but this kind of rough development at the cost of sacrificing the environment.On July 30,2007,the Ministry of Environmental Protection,the Banking Regulatory Commission and the Pedestrian Bank jointly proposed a new credit policy,which led to the emergence of green credit.It guides the flow of credit funds through financial leverage,promotes the transformation of traditional enterprises and the sustainable development of environmental protection enterprises through differentiated pricing,and opens the prelude to the implementation of green financial reform in China.In 2015,the Fifth Plenary Session of the Eighteenth Central Committee proposed to incorporate green development into the overall framework of socialist development,further accelerating the pace of commercial banks to implement green credit policy.This paper is also based on the commercial banks as the main body of green credit to carry out the following research:Firstly,the motivation of implementing green credit is studied.First of all,the external environmental problems force commercial banks to increase the participation and implementation of green credit.Secondly,from the perspective of the government,by establishing a game model between the government and the bank,this paper expounds the inevitability of the government to promote green credit policy.Finally,for commercial banks themselves,the game model between enterprises and banks is established,and the profit and loss of commercial banks are analyzed.Secondly,it discusses the impact of green credit on the performance of commercial banks in China in theory.On the one hand,for green credit itself,expanding the scale of green credit will significantly improve the profitability of commercial banks in the long run.This paper mainly analyses from five dimensions.It is conducive to the sustainable economic development of China,can increase the income of intermediary business of commercial banks,improve the reputation and image of commercial banks,can reduce the potential risks of commercial banks and can improve them.International competitiveness.On the other hand,with the expansion of green credit,the green reputation will also have a positive impact on the performance of commercial banks,which can significantly enhance the value of commercial banks.Thirdly,through empirical research,we find that there is a positive relationship between the scale of green credit and the business performance of commercial banks,which increases the determination and confidence of commercial banks to implement green credit policy.In addition,after the empirical study of the relationship between the green reputation of commercial banks and their business performance,it is found that there is a positive correlation between the media reports on the implementation of green credit by commercial banks and the business performance of commercial banks.Therefore,commercial banks can use their channel advantages to dig new profit growth points in the context of the intellectualization of retail market.