Research On The Impact Of Green Credit On Commercial Banks’ Operational Performance

The development of a green economy and the construction of an ecological civilization are issues of general concern to this society.Green credit is an important way for financial institutions to respond to environmental and social risks and enhance their international competitiveness.It is also a major measure to implement the requirement of "developing green finance" proposed by General Secretary Nan Piing’s report in the party’s 19th National Congress.It is also a powerful measure for China to win the battle against blue sky and one of the three major battles.In response to General Secretary Xi Jinping’s proposal,Green Qingshan is the call of Jinshan Yinshan.It is also a practical measure to implement China’s five development concepts and the overall layout of the Five-in-One.It is to accelerate the reform of the ecological civilization system,build a beautiful new China and realize the economy,the environment and society.Effective financial leverage for sustainable development.The impact of green credit on the economic benefits of commercial banks is directly related to the enthusiasm and initiative of c01mmercial banks to implement green credit policies.Therefore,it is necessary to deeply explore the impact of green credit business on the performance of commercial banks.The paper starts with the profitability and risk prevention ability of commercial banks,and studies the impact of commercial banks on green credit on their business performance.On the basis of relevant research results and theoretical research,the current development status of China’s green credit is analyzed.At the emerging stage,the scale of China’s green credit continues to grow steadily,the role of environmental protection is gradually presented,and the overall quality level is good.On this basis,Propose the research hypothesis of this paper.Select the panel data of 20 commercial banks in 2011-2017 for empirical analysis.The study found that,first,the development of green credit in commercial banks and the improvement of their profitability have a significant positive effect.Commercial banks can improve their profitability by developing green credit;Second,the development of green credit for commercial banks has a significant negative effect on its non-performing loan ratio.Commercial banks can reduce their non-performing loan ratio by conducting green credit.Finally,on the basis of empirical research,this paper proposes the policy recommendations for promoting the development of green credit in China’s commercial banks from the aspects of the policy support of green credit mechanism and the construction of green credit of commercial banks.