Research On The Impact Of Green Finance On The Profitability Of Commercial Banks

After more than 40 years of rapid growth,the world has witnessed the economic growth of "Chinese speed",at the same time,China started to highlight the contradiction between economic development and environment.The extensive economic development mode seriously restricts the sustainability of economic development,endangers people’s health and their yearning for a better home by polluting and destroying the environment.In this case,the development of green economy to achieve sustainable and healthy development of the national economy has gradually risen to the level of national strategy.In this context,Chinese banking industry began to explore how to achieve green development and put forward the concept of green finance.Domestic and foreign academic circles have also carried out a large number of theoretical and practical studies on the development of green finance,but previous studies mostly analyzed the necessity of the development of green finance from the perspective of social benefits and environmental benefits.And there are few studies on the relationship between green finance and the profitability of commercial banks,which leaves room for the study of this paper.In this paper,the concept of green finance is extended from the current environmental problems.By summarizing the previous research,the hypothesis that the development of green finance can improve the profitability of commercial banks is put forward through theoretical analysis.By selecting the financial data and green finance data from 2011 to 2019 of 14 domestic listed commercial banks,this paper constructs individual fixed utility model to verify the hypothesis.And it has passed the empirical test,which gives the motivation of commercial banks to develop green finance from the subjective level.Finally,according to the research conclusions,this paper puts forward some policy suggestions to develop green finance in commercial banks from the aspects of cognition,system construction,market development and talent introduction.The innovation of this paper lies in :(1)The concept of green finance has been expanded and given a broader connotation.(2)It directly analyzes the impact of green finance on the profitability of commercial banks from the perspective of financial performance,and draws the conclusion that the development of green finance is conducive to the improvement of profitability of commercial banks through the construction of individual fixed effect model for regression analysis,which solves the subjective motivation problem of the development of green finance business of commercial banks.(3)This paper selects "green credit ratio" as the explanatory variable to eliminate the deviation caused by the difference in the size of commercial banks in the empirical analysis.