Research On The Impact Of Green Credit Business Of Commercial Banks On Their Profitability

As the contradiction between economic development and environmental protection becomes more and more prominent,how to promote the leading and supporting role of green finance in sustainable financing of environmental protection enterprises has become an important research field at home and abroad.It is of great significance to study the influence of green credit on the profitability of commercial banks,to perfect the green financial system,to speed up the structural reform of the supply side of financial products,and to promote environmental protection,economic development and the improvement of commercial banks' operating benefits.Based on the theory of sustainable development,the theory of corporate social responsibility,the theory of environmental risk management and the Porter hypothesis,this paper takes the profitability of commercial banks as the research object and adopts the institutional analysis.The influence of green credit on the profitability of commercial banks is analyzed theoretically by means of law and inductive analysis.The panel regression model is used to analyze the impact of green credit on the profitability of 18 listed commercial banks in China from 2007 to 2017,and the cost-benefit theory is used to explain the results of panel regression.Then the comparative analysis method is used to analyze the influencing factors that restrict the profitability of commercial banks.The research shows that the factors influencing the profitability of commercial banks mainly include macroeconomic development,banking financial market structure,national economic policies and other external factors,asset size,asset quality,capital adequacy ratio,risk management level,and so on,the financial market structure,national economic policy and other external factors,asset quality,capital adequacy ratio,risk management level.Internal factors such as operational efficiency;The positive effects of green credit on the profitability of commercial banks are mainly reflected in intermediary business,credit structure and bank reputation,and the negative effects are mainly reflected in cost effect and potential loss effect.The development of green credit business not only has a significant positive effect on the profitability of commercial banks in the short term,but also helps to improve the performance of commercial banks in the long run.The factors restricting the development of green credit of commercial banks mainly include macro-policy factors,internal factors of banks,and contradictions between commercial banks and social stakeholders.Therefore,it is necessary to give full play to the government's role of guarantee and guidance,strengthen the construction of green credit system of commercial banks,and perfect the environment of green credit social development.