Research On The Development Of Carbon Finance Business Of Chinese Commercial Banks

As the global climate environment problem becomes more serious,countries in the world are exploring the path of developing low-carbon economy to improve the quality of atmospheric environment.Carbon finance is a new economic mode that combine finance and low-carbon economy.As a pillar industry of the financial system,banks are the important participants of carbon financial markets,which would have an important impact on carbon finance’s development.Simultaneously,banks also actively explore carbon finance and so on to realize long-term growth.The research on the development of carbon finance business of banks is beneficial to guide the practice of carbon finance business and promote the transformation of bank.From the perspective of banks,the article analyzes the status,the motivation and the constraints of carrying out the business of carbon finance in Chinese banks.Then it builds the regression model for the empirical research on the effect of developing carbon finance business on banks.Thus it puts forward proposal to develop business of carbon finance for Chinese banks.The article analyzes the development of carbon finance business in banks using the method of literature research,qualitative and quantitative research.Firstly,this article combs the research on commercial bank’s carbon finance at home and abroad,which pointes out the research direction.Secondly,it expounds the meanings and types of banks’ carbon finance business.And it analyzes the effect of developing carbon finance business for banks.It also puts forward the theory of financial innovation,environment finance and property rights.Thirdly,to analyze the status quo,motivation and restriction factors of carrying out the business of carbon finance in banks,we could find that banks are faced with problems about unsound mechanism of carbon market,insufficient ability of the innovation of carbon financial products and the weak system of the risk prevention.Fourthly,through selecting the panel data of 15 listed commercial banks,the paper builds regression model in relate to the bank’s profitability,management risk and the creative ability.The result indicates that developing carbon finance business has positive effect on profitability,business risk and the ability of business’ innovation for banks.Fifthly,we would get inspiration by analyzing the experience of foreign commercial banks to carry out the carbon finance business.Finally,the article gives proposal to develop the carbon finance business for banks,including arousing the enthusiasm of commercial banks to carry out the carbon finance business,establishing the development mechanism of commercial bank’s carbon finance business,promoting the ability of commercial bank’s carbon finance business’ innovation and paying attention to international cooperation and collaboration with environmental protection agencies.Research on the development of carbon finance business of banks is aimed at the analysis of the impact of the business on bank’s profitability,risk and creative ability.It would be helpful to encourage banks to develop carbon finance business and simultaneously pay attention to the prevention of risk so as to realize the stable operation of commercial banks and promote the development of low-carbon economy.