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

In recent years,with the continuous development of China's economy,the GDP has been rising year by year.The accompanying environmental pollution problems have become increasingly serious,economic development and ecological environment cannot be balanced.Green finance as the financial sector to promote the development of environmental protection born.As a result,green credit has increasingly received attention as the main green financial means to promote the development of green economy.Since the first introduction of the concept of green credit by the three major departments of the State Environmental Protection Administration,the People's Bank of China and the China Banking Regulatory Bureau in 2007,green credit policies have passed more than ten years.With the continuous development of the year,the proportion of green credit business in the loan business of commercial banks is still low.Most banks' green credit accounts for no more than 10% of the loan business.Commercial banks have always paid less attention.Considering that commercial banks as enterprises take operating performance as their primary goal,the impact of green credit on operating performance will determine the attitude and behavior of commercial banks.This paper summarizes the relevant literature and data,theoretically analyzes the impact mechanism of green credit on the bank's operating performance,and introduces the current external policy issues and bank's internal management problems in the development of green credit.Then,from the perspective of the importance of green credit business,taking my country's first “Equatorial Bank” Industrial Bank as a typical case,combing the background,motives and development status of its green credit business.Using the event analysis method and the comparative analysis method,the stock price fluctuation after Industrial Bank joined the Equator Principles and the changes in Industrial Bank's operating performance in the industry during the decade of green credit development were analyzed.It can be seen that in 2008,the market believed that green credit could indeed affect the operating performance of Industrial Bank,but the market held a conservative attitude,which was consistent with the reality that the domestic green credit business was at an early stage and the policy was less clear.Next,through the construction of the bank's operating performance system,and comparing the performance evaluation values of 15 other typical commercial banks in the industry,it can be seen that the operating performance of Industrial Bank has indeed been greatly improved in the vigorous development of green credit for ten years.In order to ensure that the analysis results are more objective and rigorous,the panel VAR is used for empirical analysis.The results show that the green credit investment in the previous period can have a significant impact on the current operating performance.According to the result of variance analysis,green credit can indeed affect the bank's Operating performance has a positive impact that continues to rise.Therefore,this paper finally puts forward corresponding suggestions to the existing policy issues and commercial bank's own management issues.At the same time,it puts forward suggestions for the follow-up green credit development of Industrial Bank in light of the actual situation.I hope the China's commercial banks can seize the development opportunities of green credit and establish an effective long-term development mechanism.