The Impact Of Green Credit On The Performance Of Commercial Banks

Since the reform and opening up,with the rapid development of China’s economic construction,the ecological environment is not optimistic.To this end,since the eighteen CPC Central Committee and the State Council attach great importance to green development,General Secretary Xi Jinping has repeatedly stressed the need to "unswervingly take the road of ecological priority and green development".Practice has proved that in promoting green development,we should not only rely on the guidance of the government and the control of legal means,but also give full play to the guiding role of the market mechanism.It is in this context that green credit emerges as the times require.However,as a profit-making organization,the development of green credit business of commercial banks should be subject to the principle of profitability.Because profit is the common goal of all enterprises and the internal driving force of enterprise management.Therefore,it is not only of great practical significance but also of theoretical significance to study the impact of green credit on the business performance of commercial banks.Firstly,the paper gives the research background,the purpose and significance of the research,and combs the relevant literature at home and abroad,constructs the overall research framework.Secondly,this paper expounds the relevant theories of green credit and bank performance,and analyzes the mechanism of the impact of green credit on bank performance.Then,focusing on five large commercial banks,this paper analyzes the current situation of green credit development of commercial banks from the aspects of credit scale,credit products,credit environmental benefits and credit system,and discusses the bank’s operating performance from the aspects of profitability,liquidity,risk and growth ability.On this basis,based on the panel data of five large commercial banks from 2008 to 2019,this paper uses the principal component analysis method to comprehensively evaluate the operational performance of commercial banks,and with the help of the panel data model,makes a quantitative analysis on the impact of green credit on the operational performance of commercial banks.The results show that the green credit of five large commercial banks has a significant positive impact on business performance,and asset size,the number of employees and China’s economic growth rate have a positive impact on the bank’s business performance.Then,in order to promote the development of green credit and improve the business performance of commercial banks,this paper analyzes the internal and external influencing factors of the development of green credit of commercial banks.Finally,the paper summarizes the full text and puts forward the main research conclusions of this paper.On this basis,in view of the internal and external problems of developing green loans from commercial banks and the actual situation,this paper proposes appropriate proposals for developing green loans and improving the business performance of commercial banks at the three levels of government,enterprise and banks.