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

At present,China's economy is developing rapidly,but the quality of the environment has been declining and resources are constantly decreasing,which has also caused many problems.General Secretary Xi Jinping pointed out in the report of the 19 th National Congress that the first step in building a beautiful China is to develop green finance.The concept of green finance is also constantly being promoted and people begin to pursue sustainable development.Green credit is an important economic means of green finance.China is also constantly introducing policies to encourage and support the development of green credit.Commercial banks are the core of the financial system,and they bear important responsibilities in the implementation of green finance.Chinese banks regard green credit business as an opportunity to improve their own operating performance,incorporate environmental factors into their credit systems,continuously improve systems and innovate products to support green credit development.Today,green credit has become an important part of bank credit,and its scale is increasing year by year,which is driving China's economic transformation and upgrading.Banks have corresponding responsibilities for environmental protection and vigorously develop green credit,hoping to improve their business performance while contributing to environmental protection.This paper first analyzes the background of the topic and the significance of the research,and then combs the domestic and foreign scholars' literature on green credit and the operational performance of commercial banks.In the case of sorting out the relevant research results,the research content of this paper is drawn,the research ideas and research methods are determined,and the innovation points and deficiencies are clarified.Secondly,a theoretical analysis of green credit and commercial banks' business performance evaluation is carried out.Related theories of green credit include the connotation of green credit and the theoretical basis for developing green credit.Theory of evaluating business performance includes the meaning of business performance,evaluation methods and indicator theory.It specifically elaborates which indicators are selected and methods to measure performance and the reasons for selection.Then study the mechanism of the effect of green credit on bank performance.Green credit has the effect of increasing operating costs and income for profitability,reducing risk and optimizing structure for asset quality,and improving reputation and broadening prospects for growth capability.This paper selects the data of 17 banks from 2011 to 2018 and uses panel data regression method to conduct empirical research on the impact of green credit on the operating performance ofcommercial banks and draws conclusions,and then the government and banks are advised based on the conclusions of theoretical and empirical analysis.Empirical research shows that green credit has a positive impact on the profitability of state-owned banks and a negative impact on the profitability of non-state-owned banks.In the early stage of issuing green credit,banks may increase costs such as training fees and information fees,which leads to a decline in the profitability of banks.However,state-owned banks are well-funded,receive more state policy subsidies,and produce more products,which can increase income.Green credit has a positive impact on the asset quality of state-owned and non-state banks.Green credit can optimize the credit structure and improve asset quality,which is conducive to the sustainable development of banks.Green credit has a positive impact on the growth capabilities of both state-owned and non-state banks.State-owned banks have more room to grow green credit.In the long run,green credit can improve operating performance.The government should improve the information sharing mechanism and the incentive and restraint mechanism,such as establishing an information database and improving the information disclosure system.In terms of finance,the government can appropriately reduce or exempt taxes and provide certain subsidies for enterprises and banks.Banks should actively innovate products to improve their own profits,train talents to accelerate lending efficiency and reduce lending costs,and strengthen risk management.