Research On The Impact Of Green Credit On The Operating Performance Of Commercial Banks

Since reform and opening-up,our country economy rapid development and achieved good results attracting global attention,but the extensive economic development model has caused complex environmental problems.President xi jinping put forward the concept of "green development" in the 13 th five-year plan,but practice has proved that the concept of sustainable development cannot be fully upheld and practiced simply by relying on the administrative power or legal means of the government.In addition,financial means should be actively used to give play to its function of resource allocation.It is in this context that green credit emerges.However,as a for-profit financial institution,the development of green credit business is closely related to the business performance of commercial Banks,so it is of great practical significance to study the impact of green credit business on the business performance of commercial Banks.Taking the relevant data of 14 commercial banks in China from 2010 to 2018 as the research object,first using the factor analysis method to measure the comprehensive performance of commercial Banks,an empirical analysis based on the panel model green credit impact on commercial bank comprehensive business performance,as well as the influence of heterogeneity.The research results show that:(1)Green credit has a negative impact on the operating performance of commercial Banks.The main reasons are as follows: first,to carry out green credit business,commercial Banks need to invest a large amount of cost in environmental risk management,which increases the operating cost of commercial Banks;Second,green credit is widely used in projects with a long construction cycle and a slow recovery rate,which reduces the liquidity of credit funds of commercial Banks and reduces the capital utilization rate of Banks.Third,the interest rate of green credit is lower than the normal interest rate,and the government lacks the corresponding subsidy mechanism for green credit.Fourth,green credit enables Banks to spend part of their resources on non-core business,which has a certain crowding out effect on their core business.(2)There is significant heterogeneity in the influence of green credit on the operating performance of different types of commercial Banks,that is,there is a significant positive correlation between green credit and the operating performance of state-owned Banks,but a significant negative correlation between green credit and the operating performance of joint-stock Banks.Main reason is: first,the state-owned Banks have good credit experience and foundation of the business,green credit professional talents with more and more complete green credit evaluation system,at the beginning of the green credit implementation is easier to make the initial fixed costs less,green credit and joint-stock bank lending industry and customer concentration is higher,so at the beginning of the green credit to implement the initial fixed costs are higher;Second,share-holding Banks rely more on the difference between deposits and loans to make profits.Liquidity is more important to the operating performance of share-holding Banks.State-owned Banks,on the other hand,have larger deposit sizes and stronger risk resistance.Thirdly,the state-owned Banks are at the core of the national financial institutions,so they will get a lot of green credit policy support from the government.Fourth,the scale of assets of state-owned Banks is much larger than that of joint-stock Banks,and the impact of green credit business on their core business is smaller than that of joint-stock Banks.