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

Since the reform and opening up,China's economy has developed rapidly,but while developing the economy,it has neglected the emphasis on the environment and caused damage to the environment.China is currently facing huge resource and environmental pressures.Therefore,the country put forward the concept of sustainable development,that is,the coordinated development of economy and environmental protection.An important way for sustainable development is to develop green finance.General Secretary Xi Jinping pointed out in the report of the 19 th National Congress of the Party that accelerating the reform of the ecological civilization system and building a beautiful China;building a market-oriented green technology innovation system,developing green finance,strengthening the energy conservation and environmental protection industry,clean production industry and clean energy industry.This shows that China has raised green finance to a national strategic level.Green finance is an important way to promote the high-quality development of the national economy.The banking industry is an important financial core department in China,which controls the nation 's economic lifeline and has made tremendous contributions to China 's deepening financial reforms and supporting the development of the real industry.Green credit is the main strategy implemented by banks in response to the country 's call to develop green finance,that is,banks use financial leverage to promote the transformation and upgrading of traditional enterprises by reducing loans to high-pollution enterprises and increasing loan concessions to environmental protection enterprises.The rapid development of environmental protection enterprises.After the concept of green credit was put forward in 2007,China began to focus on the implementation of green finance reform and gradually incorporated green development into the overall framework of China's economic development,which greatly promoted the expansion of green credit.Commercial banks should also realize the importance of green credit for their own development,so as to enhance the internal motivation of commercial banks to implement green credit.