Research On The Impact Of Green Credit On The Operational Performance Of Chinese Commercial Banks

At present,green finance has been considered as a part of state strategy in China.As a major component of green finance,green credit has been paid much attention,for it plays an significant role in environmental protection and contribution to Chinese transition towards green economy.The operation of green credit business is vital to commercial banks' sustainable development and for commercial banks,it depends on the profitability green credit can bring that whether commercial banks take positive attitudes towards green credit business.Therefore,it is important to explore the impact of green credit on commercial bank's operational performance.Firstly,this paper expounds the background and significance of the impact of green credit on the operational performance of commercial banks,and combs the research literature of green credit at home and abroad.Secondly,this research introduces the relevant theoretical basis of green credit,and employs the cost-benefit analysis method of economics to analyze the impact of commercial banks on implementing green credit with defining that operational performance is a comprehensive indicator that includes three aspects: profitability,asset quality,and innovation development capabilities,Then three theoretical mechanisms for the impact of green credit on the operational performance of commercial banks are proposed.Subsequently,the relevant data of 17 listed commercial banks in2010-2017 were selected as empirical analysis samples.After a series of necessary tests,the panel models were constructed for empirical analysis.The regression results showed that:(1)There is a significant positive correlation between the green credit and the total return on assets,that is,green credit can improve the profitability of banks.(2)The green credit has a significant negative correlation with the non-performing loan ratio,indicating that green credit can reduce the credit risk of banks and help improve the quality of credit assets of banks.(3)There is a significant positive correlation between the proportion of green credit and non-interest income,indicating that green credit can improve the non-interest income level of commercialbanks,thereby improving their ability of innovation.And all three models passed the robustness test,indicating that the final regression results are reliable.Finally,according to the status quo and empirical analysis of green credit,the empirical analysis conclusions,suggestions were made including improving the internal and external incentive and restraint mechanism related to green credit,improving the environmental information sharing mechanism and accelerating the innovation of green credit products and services,with a view to promoting commercial banks to actively take social responsibility while improving their operational performance.