The Impact Of Green Credit On The Credit Risk Of Commercial Banks

Since the reform and opening up,with the continuous growth of my country’s economy,environmental problems have become increasingly prominent.How to coordinate the contradiction between economic development and environmental protection is an urgent problem that needs to be resolved in the current stage of my country’s economy turning to high-quality development.Green credit is an innovative development of traditional bank credit.To a large extent,it sets a higher loan threshold for polluting companies or projects,so as to guide the flow of funds to energy-saving and environmentally-friendly enterprises or projects,realize industrial transformation,and promote sustainable economic development.As the main body of green credit development,the development of green credit by commercial banks has brought more uncertainty to the development of commercial banks.Therefore,it is of great significance to study the impact of commercial banks’ green credit business on their credit risk.On the basis of combing relevant domestic and foreign research results,based on the corporate social responsibility theory,environmental risk management theory and sustainable development theory of green credit,this paper derives the mechanism of green credit business development on the credit risk of commercial banks.The current development status and existing problems of green credit in my country are summarized.Finally,the panel model analysis method is used to conduct empirical research on the impact of commercial banks’ green credit business on their credit risk.On this basis,by setting threshold variables,a threshold panel model is established to further examine the effect of green credit on commercial banks’ credit risk.The research found that:(1)Commercial banks’ green credit business can reduce the credit risk of commercial banks as a whole,and there is a significant negative correlation between the two;(2)The impact of green credit on commercial banks’ credit risk depends on the size of the bank There are differences due to different sizes.When it is higher than the critical value of 10.5813,the negative effect of green credit on the credit risk of commercial banks is weakened;(3)Through theoretical and current analysis,it can be found that my country is still in the process of developing green credit business.Issues such as the small scale of green credit development,insufficient innovation in green credit products,lack of relevant professionals,and effective risk identification mechanisms.Based on the above conclusions,this article proposes the following policy recommendations: the government should establish and improve the green credit information disclosure system,strengthen green credit incentives,and implement the heterogeneity of green credit policies;commercial banks should establish and improve the structure of green credit organizations and expand the scale of green credit development,Strengthen the cooperation between the construction of green credit-related professionals and the environmental protection department.