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

Since the 21 st century,the rapid economic development has brought increasingly serious environmental problems,and the concept of low-carbon economy has been paid more and more attention in the world.In 2002,in response to the environmental problems caused by project financing,many financial institutions jointly drafted a set of guidelines for such problems: the Equator Principle.In 2003,10 international commercial banks announced acceptance of the Equator Principle.In recent years,the Chinese government and relevant departments have gradually realized the importance of integrating green environmental protection into economic development.In 2007,the Ministry of Environmental Protection of China,together with the Banking Regulatory Commission and the People's Bank of China,issued the Opinions on Implementing Environmental Protection Policies and Regulations to Prevent Credit Risks,which required the financial sector to formulate policies and measures to promote energy conservation and emission reduction,and to reduce the harm of environmental problems by guiding the flow of funds.The concept of "green credit" was first put forward.Since then,commercial banks have gradually started to develop green credit business.In theory,developing green credit as a manifestation of fulfilling social responsibility,and can effectively manage environmental risks,so as to enhance the competitiveness of commercial banks,but at the same time,it will increase the loan auditing procedures,resulting in increased costs.Therefore,whether the implementation of green credit can improve the competitiveness of commercial banks is the main research issue of this paper.This paper chooses relevant data of 16 listed commercial banks such as Industrial and Commercial Bank of China,Industrial Bank of China,Bank of Nanjing and so on as samples to explore the role of green credit in the competitiveness of commercial banks,which is the main body of its implementation.The conclusions are as follows: First,the implementation of green credit by commercial banks can effectively promote their competitiveness to a certain extent.However,the promotion effect was slightly smaller,0.0201,0.0031,0.0050 and 0.0490,respectively.It may be that commercial banks,under the pressure of operating performance,fail to fulfil their social responsibilities to the greatest extent and fully develop green credit business.Secondly,the promulgation of green credit policy can also enhance the competitiveness of commercial banks,which highlights the effectiveness of the policy,but its promotion effect is less than that of commercial banks directly carrying out green credit business to enhance their competitiveness.Thirdly,the promulgation of green credit policy will reduce the promotion of competitiveness of commercial banks in the development of green credit business to a certain extent.The macroeconomic policies promulgated by the government are aimed at the whole banking industry,and they are not fully applicable to each bank.The banks need to formulate specific rules and operational guidelines to further develop green credit business in accordance with their own reality.Based on this,this paper puts forward policy suggestions from the two levels of government and commercial banks.The government should give full play to its role as a macro-regulator and create favorable external conditions for implementation.Commercial banks should formulate specific development plans according to their own reality,so as to promote their competitiveness and achieve sustainable development.At the same time,it also provides reference for the construction and improvement of China's green financial system.