Does Green Credit Reduce The Operating Risk Of Commercial Banks?

Since the beginning of the 21 st century,in response to increasingly severe environmental problems such as resource depletion and spread of smog,my country has begun to learn from the excellent experience of foreign "Equator Principles",emphasized that commercial banks should follow environmental protection laws when formulating credit policies,and launched "green credit" "mechanism.However,because commercial banks lack green credit development experience and worry that expanding the scale of green credit will increase operating risks and bring risks of bankruptcy,green credit policies have been developed in my country for more than ten years,and the overall scale is still small.As of 2019,China The green credit business of the commercial banking industry accounts for only 9.83% of corporate loans,which is far from the international average.In 2007 started to develop green credit in our country,but the green credit policy in our country,more than 10 years of development,the proportion of green credit balances are still small,by 2019,China’ commercial Banks green credit business brought to loan proportion is only 9.33%,and large gap with the international average level,policy implementation encountered obstacles,the main problem is that commercial Banks worried about the implementation of green credit will shrink bank credit scale,the original credit funds will be slow due to long investment cycle,earnings increased risk of environmentally friendly projects and make business,brings the risk of bankruptcy,execution for lack of motivation and courage.Although domestic average level is low,green credit development but socgen is the most famous of these,became China’ first since 2007 to join the equator principles of commercial Banks,societe generale will as strategic decision to implement green credit,green credit scale expands unceasingly,by 2019,its green credit business brought to loan proportion reached 56.23%,domestic green credit business is the largest toward than loans of commercial Banks,and lead the second place,therefore,choose societe generale to study the influence of the green credit to its operating risk,undoubtedly has the very high research value,First in this paper,societe generale’green credit process and characteristic are expounded,the effect of the implementation of green credit feasibility is discussed,and then analyzes its changes after expanding green credit business risk,because the management risk is composed of various factors,this article mainly according to the Basel core target management risk,management risk into credit risk,market risk,liquidity risk,using the factor analysis method to draw industrial bank and commercial Banks operating risk composite scores for comparison and analysis,finally summarizes the societe generale green credit as strategic decision after the impact on the operating risk,In order to bring good demonstration effect to other commercial banks,enhance the confidence of other commercial banks to expand the scale of green credit,and constantly improve China’environmental quality.