Does Green Credit Improve Operating Performance?

Pollution control is necessary for developing the Green Industry and keeping high quality economic.The implement of policy can not act without material security,by promoting capital flow to green industry,green credit can guide industrial transformation and upgrading.However,only relying on external supervision is not effective.To achieve the sustainability and effectiveness of green credit,the most important thing is to stimulate the inner motivation of banks.Whether or not to promote green credit depends on the benefits of the business.Therefore,it is particularly important to study the inner connection between green credits and operating performance.This article first starts from a theoretical point of view,sorts out relevant domestic and foreign documents,states the related definition and theory,and by this way,deeply study the inner logical connection between them.Then it describes the business situation of them from the aspect of institution,innovation practice,and effect,which makes the base for next study.This article combs through the literature and finds that the current academic circles have different understandings about whether green credit has improved the operating performance of banks.Therefore,this article first constructs a panel data model from a common point of view,combined with regression analysis to get a preliminary quantitative relationship between green credit and operating performance.After that,based on the analysis of commonality,the Industrial and Commercial Bank of China,which is in the forefront of green development,was selected to conduct case studies based on its specific data.First of all,I reviewed the development history and practices of ICBC’s green credit business,in order to give other commercial banks a reference.Secondly,from the perspective of profitability,credit risk and intermediate business income,ICBC’s operating performance was studied,and it was found that the development of green credit business had a certain effect on ICBC’s profitability enhancement,credit risk reduction,and business expansion.That is to say,from an overall point of view,the implementation of green credit in commercial banks can improve operating performance,which is basically consistent with the results of the common analysis.The main reason is that the implementation of green credit has enabled ICBC to establish a good corporate reputation,establish a sound risk management system,and improve Diversification of business.Finally,it study the practical problems of the act of green credit with the existing research,and make some advice in the aspect of the government and banks,which to realize the continuous and healthy development of the green credit and Chinese economy.