The Impact Of Green Credit On The Operating Performance Of China’s Commercial Banks

At present,our economy is in the critical period of structural reform.General Secretary Xi Jinping also stressed on various occasions that we should always implement the concept of green development and the idea of "beautiful scenery",which is the thought of Jinshan Yinshan.The government has also promulgated a series of laws and regulations to solve the social problems caused by environmental pollution.However,practice shows that the effect of relying solely on the mandatory means of the government is not good.In addition,we should use the power of finance to give full play to its function of resource allocation in society,and green credit came into being under this background.The business performance of commercial banks is related to the steady development of banks.Therefore,it is of great practical significance to explore the impact of green credit business on the business performance of commercial banks.By discovering its impact mechanism on business performance,commercial banks can better carry out green credit business,so as to form a good interactive cycle between green credit and business performance,This will help China’s economic structure transformation and upgrading and realize green and sustainable development.This paper takes the data of 22 commercial banks from 2011 to 2020 as the research object,which is mainly divided into three parts.In terms of theoretical analysis,this paper sorts out the impact mechanism of green credit on the profitability,asset quality and growth ability of commercial banks on the basis of relevant theories and literature,From the perspective of theoretical analysis,this paper discusses the impact of green credit on the operating performance of commercial banks;Secondly,in the aspect of current situation analysis,this paper analyzes the green credit situation of China’s commercial banks.At the present stage,the scale of green credit in China is increasing and the number of products is becoming richer and richer;Thirdly,in the empirical aspect,this paper first measures the comprehensive operating performance of commercial banks through factor analysis method,then establishes a panel model for empirical analysis,and tests the robustness and heterogeneity.Finally,the following conclusions are drawn: first,there is a negative correlation between green credit and operating performance of commercial banks,This is mainly because green credit increases the operating costs of commercial banks,as well as the characteristics of long cycle of green projects,slow capital return speed and high risk,as well as the crowding out effect of green credit business on traditional commercial banking business;Second,compared with large state-owned banks,the impact of green credit on small and medium-sized non-state-owned banks is more significant and deeper,mainly because state-owned banks have abundant cash flow and good business foundation,while most non-state-owned banks have high customer concentration and weak ability to resist risks,Make the negative impact of green credit business on non-state-owned banks more significant.Finally,this paper puts forward some suggestions for the above research.