Research On The Impact Of Green Credit On The Profitability Of Commercial Banks

Due to the reform and opening up,China's rapid economic growth has reached globally remarkable achievements.However,traditional extensive growth also causes complex environmental problems,and China is confronting the enormous resource and environmental pressures.The report of the 19 th National Congress of the Communist Party of China indicates that China has raised the development of green finance to the height of national strategy,and green finance has become the core of promoting high-quality economic development.Since its first introduction in 2007,Green Credit has been in development for more than a decade.Green credit is to support the economic and social development through credit instruments and transmission mechanisms.Driven by national policies,the development of green credit in banking financial institutions,while showing the continuous improvement of the system,the continuous enrichment of products and the continuous emergence of results,still faces the imperfect information disclosure and communication mechanism.The bank's green concept and operational capability.Lagging,lack of policy incentives and other issues.In the existing research,foreign scholars have made positive evaluations from the perspectives of sustainable finance,environmental risk management and equator principles.From the perspective of corporate social responsibility,there are positive,negative and non-related evaluations,and domestic scholars have different research perspectives.In summary,as the main research field of green finance in China,the impact of green credit on the profitability of commercial banks is still inconclusive due to the coexistence of opportunities and challenges.This paper attempts to study the impact of green credit on the profitability of commercial banks at the current stage in the context of the increasingly perfect green financial system,and whether there is a threshold effect on the related impact.This paper first expounds the relevant theoretical basis,second analyzes the positive,negative and comprehensive effects mechanism of green credit affecting the profitability of commercial banks,and then employs the annual data from 2011 to 2017 to establish a static panel model and dynamic panel model.And the panel model of threshold regression empirically analyzes the impact of green credit on the profitability of commercial banks.The results show that:(1)At present,green credit has a negative negative impact on the profitability of commercial banks;(2)when the capital adequacy ratio and provision coverage ratio are at different levels,the negative impact of green credit on the profitability of commercial banks The effect has a nonlinear threshold effect,and is a double threshold effect and a single threshold effect,which is,when the capital adequacy ratio is higher than the 12.44% and 14.07% threshold,or when the provision coverage is higher than the 208.37% thresholds,The associated negative impact will be enhanced,for the reason that green credit faces higher allocation costs and opportunity costs under capital constraints.Finally,this paper proposes relevant policy recommendations from the aspects of reducing the weight of green credit risk,improving information disclosure and communication mechanism,accelerating the construction of commercial banks and improving policy incentives.