The Research On Green Finance Impact On Commercial Banks’ Profitability In China

In recent years,sustainable economy is gradually becoming important for promoting economic restructuring in China,even in the world.As we all know,finance is the most important part of a country’s economic field.How to maximize the role of financial instruments without polluting the environment and wasting resources has become more attention.The contradiction between environmental protection and economic expansion is increasingly intensified.In order to alleviate this contradiction,the concept of "green finance" came into being.The world economy has gradually realized that the banking industry should shoulder the corresponding corporate and social responsibilities.At the same time,it not loans to enterprises with heavy pollution to traditional industries,but invest funds in those enterprises with green environmental protection,scientific and technological innovation and high energy utilization.This paper takes the impact of Green Finance on commercial banks’ profitability as the research object.Firstly,it expounds the basic theoretical basis of green finance,and establishes the purpose based on the summary of domestic and foreign theoretical research.It introduces the main factors affecting the profitability of commercial banks,mainly from the internal and external factors.Secondly,the paper carry out empirical analysis on the impact of green financial business on commercial banks.Empirical results show that the green financial business of commercial banks in a short period of time is not conducive to the improvement of their profitability,but to a certain extent.Thirdly,through the practice and relevant experience of domestic and foreign commercial banks in green financial business,the paper puts forward reasonable suggestions for commercial banks in green financial business,which can improve the profitability of commercial banks in green financial business,promote the development of green economy in China,and ultimately achieve a new sustainable economic development model.Figure2;Table6;Reference 40...