An Empirical Analysis Of The Impact Of Green Finance Development On The Profitability Of Commercial Banks In My Country

The industrial revolution in Europe in the 18th century not only brought the benefits of scale economy of mechanized production to the world civilization,but also brought environmental damage,ecological imbalance,soil and water pollution and other environmental problems.China's industrialization process after the reform and opening-up has also caused environmental problems which are hard to ignore.Under the trend of green development in today's world,it is imperative to transform industrial structure and promote green,healthy and sustainable economic development.In July2007,China issued the "Opinions on Implementing Environmental Protection Policies and Regulations to Prevent Credit Risks",which fully opened the curtain of China's green finance.Since then,a series of policies have been issued to promote the rapid,efficient and all-round development of green finance.CIB and JSBC have successively implemented the equator principles.In Huzhou,where Comrade Xi Jinping put forward the scientific judgment that "Clear waters and green mountains are the golden mountains",the Bank of Huzhou announced the implementation of the equator principles and became the third equatorial bank on the Chinese mainland in 2019,demonstrating the confidence of Chinese commercial banks in promoting green finance.Green development cannot leave the support of the economy in our country.As the hub of social capital,commercial banks play an important role in the transformation and upgrading of green industrial structure.The power for commercial Banks to participate in green finance lies in whether they can grasp the development opportunity of green finance and improve their profitability by carrying out green finance business.Therefore,it is of great significance to study the impact of green finance on the profitability of commercial banks.After combing the domestic and foreign relevant theory of literature,this paper first discusses the definition of green finance,introduces the current development of green finance in China and at abroad.The process of building a green finance in China is divided into beginning,development,speed up the three stages,and sums up the green financial development in China encountered do not have a unified standard,information opaque,the lack of professional talents,development power shortage,etc.Then,the paper analyzes and sorts out the micro,medium and macro factors that affect the profitability of commercial banks,discusses the impact of green finance on the profitability of commercial banks,and summarizes the positive and negative impact paths of green finance on the profitability of commercial banks.After adopting 13 listed commercial banks in China in 2010-2018 data,build a fixed effects model in which return on assets(ROA)as the explained variable,green loan ratio(GLR)as the explained variable,logarithmic of bank assets(LnTA),capital adequacy ratio(CAR),non-performing loan ratio(NLR),provision for coverage(PVC),cost income ratio(CIR),real GDP growth(ZGDP)as the control variable for empirical research.The results show that the positive effect of green finance on the profitability of commercial Banks is greater than the negative effect,and the driving effect of green finance on large state-owned commercial banks is greater than that on joint-stock commercial banks.The ratio of total assets and cost to income is negatively correlated with the profitability of commercial banks.The real GDP growth rate is positively correlated with the profitability of commercial banks.Moreover,for large state-owned banks,provision coverage is positively correlated with profitability.After summarized the full text,this paper puts forward policy suggestions from the perspective of government and commercial banks,such as promoting the development of green industry,improving the supervision and information disclosure system,improving the incentive mechanism,fostering interdisciplinary talents,setting up internal green financial development guidelines,expanding the structure of green financial products,and establishing professional departments to prevent green financial risks.