Research On The Influence Of Green Credit On The Business Performance Of Commercial Banks In China

Since the reform and opening up,China's economic development has achieved rapid growth.The problem of pollution is becoming more and more serious.Environmental pollution also affects people's quality of life.In recent years,the government is also aware of the existence of problems,and began to attach importance to the common sustainable development of economy and environment.As an important policy of our country,"green credit" is an important tool to realize the green allocation of funds.Commercial banks are the main institutions to implement green credit policies and develop green credit business.Whether green credit can bring economic benefits to commercial banks directly affects their enthusiasm and initiative in implementing green credit policies.Therefore,it is necessary to study the impact of green credit on the business performance of commercial banks.Firstly,this paper introduces the research results of green credit at home and abroad.And the basic theory involved.Then,it defines the concept of green credit and business performance.Secondly,it expounds the current situation and existing problems of green credit in China's commercial banks.It is found that the green credit business of commercial banks in China has taken shape.However,there are still some problems,such as the small proportion of green credit in the total loan,the single variety of green credit products,and the imperfect long-term mechanism.Then this paper analyzes the positive and negative effects of green credit on the business performance of commercial banks.Among them,green reputation,credit structure,credit risk,product innovation and management level have a positive impact on the bank's business performance.Operating cost,capital return,capital squeeze and adverse selection have a negative impact on the bank's operating performance.In terms of empirical research,this paper selects 20 commercial banks in China from 2009 to 2018 as research samples.This article uses the fixed effect model and the random effect model.Then this paper selects five aspects of profitability,credit risk,capital adequacy,capital liquidity and management level,and conducts an empirical analysis on them.The research results show that green credit has a positive impact on the credit risk control capacity,capital adequacy and capital liquidity of commercial banks.However,it does not improve the profitability and management level of commercial banks.Finally,this paper studies banks with different nature of equity.Based on the above research conclusions,combined with the current situation and problems of green credit development,this paper puts forward suggestions for commercial banks to carry out green credit business from multiple perspectives.It is hoped to provide enlightenment for commercial banks to further promote the development of green credit and improve their own business performance.