Research On The Impact Of Green Credit Business On Commercial Bank Risk

The fourth session of the 13th National People’s Congress pointed out that"promote the green development mode,realize the coordinated development of economy and nature,and reduce the energy consumption per unit of GDP by 13.5%and carbon dioxide emission by 18%.At the same time,banks should actively respond to the national call,reasonably adjust credit and loan policies,and give more targeted financial support to enterprises such as green development.Commercial banks have played an important role in the healthy development of China’s economy.Green finance has attracted more and more scholars’ attention.Therefore,there are theoretical and practical significance to research on green credit business and bank’s risk.This paper first reviews the relevant research on green credit business and commercial bank risk,then it puts forward the specific definitions of green credit and bank risk in this paper,and analyzes the trend of green credit and bank risk level of China’s commercial banks.Then,according to the theory of external effect and corporate social management responsibility,this paper discusses how green credit affects the risk of commercial banks.On the basis of theoretical analysis,this paper expounds the impact of green credit business on the risk of commercial banks from the internal and external factors of banks,and puts forward corresponding assumptions.In order to verify the proposed theoretical hypothesis,This paper selects 36 commercial banks in China as the research subject,and uses descriptive statistics,panel data regression,systematic GMM regression,intermediary effect and other methods to verify the assumptions put forward above.After a series of strict and standardized discussions,this paper draws the following conclusions:Firstly,The development of green credit business can reduce the level of bank risk.Secondly,among commercial banks with different characteristics,the impact is different.Specifically,the improvement of non-performing loan ratio,liquidity ratio and asset liability ratio promotes the positive correlation between green credit business and bank risk;Thirdly,Green credit business can improve bank reputation and reduce bank risk.Finally,according to the research conclusions,This paper draws some suggestions on increasing the scale of green credit,improving bank reputation and standardizing the development of green credit business.