The Impact Of Green Governance On The Performance Of Commercial Banks

In the 40 years since China’s reform and opening up,the domestic economy has always been in a state of high-speed operation,which has brought not only the benefits of rapid economic development,but also the serious damage to the natural environment caused by extensive production.Environmental problems not only affect people’s living environment,but also limit the potential of economic development at all levels.Attaching importance to environmental problems and taking measures are necessary conditions for sustainable development.The central hub role of the financial industry for this country has always greatly affected the capital supply of the real economy.Despite the increasing rise of various channels for capital acquisition,commercial banks,as an important part of the financial industry,have always controlled the most important source of capital for enterprises.For the real economy,it mainly refers to various types of enterprises,whose production and operation are closely related to the ecological environment.It is difficult to achieve the optimal effect for the regulation of the real economic environment only by direct supervision of environmental protection departments.It can be assisted by financial supervision.By controlling the flow of capital,enterprises can be transformed into environmentally friendly enterprises,while in the financial industry,enterprises’funds are exchanged with each other.The most important and direct is commercial banks,which prompts our commercial banks to carry out green governance and green credit business.For the Green Governance of banks,this paper firstly takes governance data,relevant financial indie tors and green credit balance of 18 listed commercial banks as samples for 13 large commercial banks,including 5 state-owned commercial banks and 13 large commercial banks,including Societe Generale Bank and Jiangsu Bank,from three aspects of ownership structure,board characteristics,executive incentives of traditional corporate governance structure and green governance.Factors,comparative analysis of the impact of Green Governance Factors on bank performance and make recommendations:in the process of bank governance,the development of green credit business should be strengthened and quality,should also constantly adjust the corporate governance structure,appropriate reduction of the size of the board of directors,strengthen the implementation of executive equity incentives quality and intensity to promote the improvement of governance level.To some extent,the development of green credit business by commercial banks is to increase the cost of their own lending process.It not only increases the process and difficulty of auditing,but also may need to abandon high-yielding"two-high-one-leftover" customers.It is also necessary to train employees and hire experts to guide them.All of these are to increase the operating cost of the lending business.Theoretically,this cost effect can only be achieved.Through the continuous development of green credit to achieve the scale effect of compensation,and even make commercial banks profitable.This paper continues to study with the same sample,and makes an empirical analysis of the green credit balance index and the commercial bank’s income index.It finds that the natural logarithm of the green credit balance is positively related to the average return rate of bank assets.Improving the level of green governance within commercial banks and actively implementing the green credit policy will win the green reputation of commercial banks and bring them to commercial banks.Long-term good performance.