Study On The Influence Of Green Credit On The Profitability Of Commercial Banks

In order to solve the increasingly serious environmental problems,the Chinese government has formulated a green credit policy to ensure the healthy and sustainable development of the economy and society.If green finance is considered as a solution to environmental problems and resource management,green credit is a bridge connecting environmental industries and financial institutions.As the main body of the financial system,banks play an irreplaceable role in responding to the national policy of green credit.How will the green credit policy affect the profitability of commercial banks? How to use scientific methods to measure the impact between the two? Therefore,it is of great significance to explore the impact of green credit policy shocks on the profitability of commercial banks based on the double difference model(DID),with green credit as the research subject.This paper takes "how to scientifically and effectively evaluate the policy effect of green credit" as the idea,follows the steps of "theoretical analysis-current situation research-empirical test",introduces the double difference method,constructs the DID model,and focuses on exploring the impact of green credit policy on the profitability of commercial banks.First,the theoretical analysis of green credit.Firstly,the concept and theoretical basis of GCP are introduced;Secondly,analyze the relationship between credit structure,reputation level and innovation level from the impact mechanism.Second,research on the current situation of green credit.Firstly,it introduces the development of green credit policy in China;Secondly,from the perspective of heterogeneity,it explains the current situation of China’s commercial banks’ GCP development;Finally,using the method of comparative study,this paper expounds the characteristics of green credit in China from the two dimensions of green credit incentive policy and product innovation.Third,the empirical test of green credit and profitability.Select the GCP and financial data of state-owned banks,joint-stock banks and regional commercial banks,and test the policy impact of GCP on the profitability of commercial banks on the basis of the double difference method(DID).In addition,further study the relationship between the two from the perspective of heterogeneity,and strive to make the empirical conclusion scientific and reliable.The conclusions of this paper are as follows: First,the green credit is positively related to the profitability of commercial banks.Second,the regulatory effect of social reputation and innovation level promotes the positive impact of GCP on bank profitability,but the regulatory effect of social reputation is small.Third,in terms of heterogeneity,GCP has a negative effect on the profitability of large state-owned banks and a positive effect on joint-stock banks.Finally,put forward relevant policy suggestions from the government level and the commercial bank level.