Research On The Heterogeneous Impact Of Green Credit On The Competitiveness Of China’s Commercial Banks

As countries around the world pay more and more attention to ecological environmental protection,how to use finance to allocate resources to reduce ecological environmental damage and environmental pollution has become a global issue.In recent years,many countries have successively released financial instruments such as green credit and green bonds to promote sustainable economic development.In China,the development of green credit by commercial banks is an important way for country to use financial leverage to promote the implementation of energy conservation and emission reduction policies.Although the current green credit is relatively small in China,it is expected to be expanded by the reputation effect.Simultaneously the level of green credit development of banks is not consistent,and bank competitiveness is also facing domestic and foreign challenges.Therefore,the research on the impact of green credit on the competitiveness of China’s commercial banks will be of great significance for banks to expand the scale of green credit,implement energy conservation and emission reduction policies,and enhance their own competitiveness.Firstly,This paper analyzes the current situation of green credit and its theoretical mechanism for the impact of commercial banks’ competitiveness.Then,this paper constructs a green credit system and uses principal component analysis to derive the competitiveness scores of each bank.On this basis,it puts forward three hypotheses that green credit has a positive impact on the competitiveness of commercial banks,a heterogeneity impact on different types of banks,and the positive impact of green credit on the competitiveness of China’s commercial banks is lagging behind.Secondly,the data of 13 listed commercial banks in China from 2009 to 2017 were selected as samples.Based on the panel data of the sample,it is divided into two types of panel data: large state-owned banks and joint-stock banks.Then they are empirically analysed by the fixed-effect regression separately and the distributed lag model is analyzed using the Almon estimation method.The research in this paper finds that green credit has a positive impact on the competitiveness of China’s commercial banks,and a heterogeneous impact on the competitiveness of different types of commercial banks in China,and the positive impact of green credit on the competitiveness of commercial banks is lagging.Finally,based on the research conclusions,this paper puts forward relevant suggestions from legal systems,policies,local governments and commercial banks.so as to promote commercial banks to enhance their competitiveness while expanding the scale of green credit.