Research On The Impact Of Green Credit On The Operational Stability Of Commercial Banks

Since the reform and opening up,China’s economic development has achieved rapid growth,resulting in increasingly serious environmental pollution,which has attracted great attention of our party and government.Green development is an inevitable trend of sustainable development in today’s society.As an important of green development,green credit plays an important role in promoting social and economic development.The green credit business of the banking industry provides financing channels for enterprises engaged in green production,and solves the financing problem.Green credit is the reflection of commercial banks responding to the green and sustainable development of the country.At the same time,it expands the business scope and new business mode,and also has a certain impact on their own business conditions.Therefore,it is of great practical significance to study the influence of green credit business on the operational stability of commercial banks.This paper mainly studies the impact of green credit on the operational stability of commercial banks.While sorting out relevant domestic and foreign literature,it analyzes the development of green credit in commercial banks in China.On this basis,the relevant data of green credit of listed commercial banks in my country is selected,and use the fixed effect model to study the impact of green credit on the operational stability of commercial banks from two aspects of profitability and asset quality.The research shows: First,the return on total assets and non-interest income measure the short-term and long-term profitability of commercial banks respectively.Green credit is negatively correlated with the return on total assets and positively correlated with the non-interest income ratio.It shows that green credit will reduce the profitability of commercial banks in the short term,and improve their profitability and operational stability in the long term.Considering the difference of bank size,green credit will reduce the profitability of large state-owned commercial banks in the short term,and promote the profitability of joint-stock and urban commercial banks;Improving the profitability of these three types of commercial banks for a long time is conducive to the operational stability of banks.Second,the non-performing loan ratio and the deposit loan ratio represent the credit risk and liquidity of the bank respectively.Green credit is negatively correlated with the non-performing loan ratio and the deposit loan ratio.It shows that green credit will improve the asset quality of commercial banks,reduce credit risk,improve the liquidity of funds,and have a positive role in promoting the operational stability of banks.For joint-stock and city commercial banks,the development of green credit business is conducive to improving their asset quality,but for state-owned commercial banks,although green credit is conducive to reducing credit risk,it cannot promote their capital liquidity.The development of green credit business can promote the operation stability of commercial banks,and is more obvious for joint-stock and city commercial banks.Based on the above research conclusions,this paper argues that the government should improve green credit laws and regulations,improve the information sharing mechanism,banks should enrich and innovate green credit products,and strengthen the training of professionals,it is hoped that while green credit can promote green development,it can also bring considerable benefits to commercial banks,reduce their business risks,improve the operational stability of commercial banks,and thus promote the green and sustainable development of the entire economy.