Research On The Development Of Green Credit In China’s Banking Industry And Its Impact Effect

Under the background of sustainable development,China has issued a series of policies and regulations in recent years to promote the development of green economy.Among them,financial means are of great importance.Among the financial means,green credit is one of the most important tools to develop green finance.It represents the financial policy orientation of the country.By controlling the flow of loans from banks,it can guide the flow of funds to environmentally friendly enterprises and promote the sustainable development of the economy.A large number of studies at home and abroad show that green credit has a positive impact on economic development,is conducive to the accelerated upgrading of industrial structure,and is conducive to the promotion of profitability for the financial sector that issues green credit.In theory,green credit can further influence the economy at macro,medium and micro levels through corporate social responsibility effect,capital source,direction,catalyst effect,ultra-short-term cost and reputation effect.In view of this,on the basis of theoretical analysis of the impact of green credit on macro-economy and banking operations,this paper takes the scale,GDP,industrial structure of green credit in China from 2007 to 2017,as well as the operating indicators of 13 commercial banks.This paper uses Granger causality test,cointegration test and panel data model to empirically study the impact of green credit scale on China’s aggregate,industrial structure and bank performance from macro,meso and micro levels.Firstly,the ratio of green credit is positively correlated with GDP and product structure upgrading.That is to say,the green credit business of banks helps to promote industrial upgrading and total economic growth.Secondly,the green credit balance has a significant positive impact on the profitability of commercial banks in China.For every 1% increase in the green credit balance,the average profitability of commercial banks increases by 0.05%.On the basis of empirical research,the paper further takes the green banking industry in Xuzhou as an example,and interviews and investigates the scale development and implementation effect of green credit from three perspectives of government,bank and enterprise.The results show that the scale of green credit represented by Xuzhou is still in its infancy and has great potential for development,which can have a positive impact on the economy in the long run.On the basis of empirical research and interviews,the paper further puts forward some policy suggestions for the development of green credit in China’s banking industry.Because the implementation of green credit has a positive effect on bank performance,we should further improve the corresponding incentive mechanism,reduce the cost of information acquisition,make the flow of information related to environmental protection more smoothly,and encourage banks to further expand the scale of green credit business.Banking industry formulates sustainable development strategy,strengthens internal management and training of relevant personnel,strengthens internal self-construction of enterprises,and further improves the green credit development system of China’s banks.