An Empirical Study On The Influence Of Green Credit On The Profitability Of Commercial Banks

In the 21 st century,the pace of transformation and upgrading of China's economic structure is accelerating rapidly.Green economy and circular economy have become the focus of China's economic and social development.On the one hand,with the continuous advancement of social economy,people's material life and spiritual life have greatly improved.People are not only concerned about food,clothing,housing and transportation,but also about the environmental quality.Environmental issues have become a very high concern of the current society.On the other hand,extreme weather such as global temperature rise,haze weather increase,frequent rainstorms and gales make people pay more attention to environmental protection and advocate blue sky and white clouds.At present,our economic and social development is moving towards energy saving,emission reduction and environmental protection.At the same time,commercial banks are increasing the strength of credit funds to support the development of green economy.At present,banks are faced with many problems,such as capital market absorbing liquidity,narrowing interest margin profit margin,inadequate traditional profit-making methods and high debt,which force them to find new development models and profit growth points,thus prompting the emergence of green credit.With the continuous development of green credit,the profitability of green credit and its impact on the development of commercial banks have become the focus of attention of the banking industry and all sectors of society.This paper takes green credit as the main research content,and takes the impact of green credit on the profitability of commercial banks in China as the main research direction.In the study,the concepts and theoretical basis of green credit are summarized to provide theoretical basis for commercial banks to develop green credit.Then,it analyses the current situation of green credit development of commercial banks in China,and points out the problems and risks faced by green credit.This paper not only starts with theoretical research,but also analyses the influencing factors of green credit on commercial banks' profitability.More importantly,it empirically analyses the impact of green credit on commercial banks' profitability by using the annual panel data of 16 banks from the direction of data model and future direction,and obtains the regression coefficient of the impact of green credit on commercial banks' profitability.Finally,the paper puts forward some ideas and Countermeasures to enhance the profitability of green credit of commercial banks.