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

With the rapid development of China’s economy,China’s economic development model has entered a new stage.The way of environmental destruction in exchange for economic development has become unsustainable,and the problems caused by the environment need to be resolved.As an important link to promote the development of the real economy and the main supplier of corporate finance,finance has more flexible and targeted adjustments to the economic development model and industrial structure through the issuance of green credit by banks,an d is more in line with the principle of market regulation.As a special enterprise,the bank’s profitability in this business will directly affect its enthusiasm for green credit business.Therefore,how to improve the profitability of commercial banks in the green credit business has important practical significance.This paper is consist of five chapters.Based on the previous researches on green credit,green finance and commercial bank profit,this paper starts from the theoretical basis of developing green credit business development,and analyzes the impact of green credit on commercial bank profit based on supply and demand theory and economic cost model.On this basis,the third part is an investigation of the development status of China’s green credit business.It sorts out the green credit-related policies since 2009,and elaborates the current stage of green credit development in China from the two aspects of green credit balance and green credit environment effect.The impact.According to the int ernal and external environment of developing green credit in China,the problems faced in the development of green credit in China at present are discussed.Then through the data building panel model of 36 commercial banks in 2010-2017,the impact of green credit on the profitability of commercial banks was empirically analyzed.It was found that the stage green credit business had a negative correlation with the bank profit of commercial banks.Based on theoretical analysis and empirical conclusions,combi ned with the previous discussion on the problems existing in the development of green credit in China and the factors affecting the profitability of commercial banks,it is proposed how to improve the green credit business of commercial banks in China and improve the profitability of commercial banks in green credit business.Suggestions in three directions: Strengthening the protection of the green credit system,improving the green credit market mechanism,and fostering the concept of green credit development.