The Impact Of Green Credit On The Performance Of Commercial Banks

Facing the rapid development of financial globalization,China has encountered various environmental problems such as the destruction of ecological environment,water resource pollution and severe climate change.In order to protect the ecological environment on which people depend and pay attention to the development of national economy,green finance has gradually become a new way for the country to realize the sustainable development of economy in recent years.At the beginning of this century,many developed countries have realized the problems between environment and economy.Some financial projects and financial activities that can reduce water pollution and environmental damage have gradually emerged.Green credit is an important financial tool in the process of green finance development in China,and plays an irreplaceable role in the development of human economy and society.Green credit can be fundamentally contained in the process of blind expansion of high pollution and high consumption industries.In this way,green enterprises can get more capital operation,which will promote the adjustment and upgrading of China’s industrial structure.A series of rules and regulations have been established in the development of green credit in commercial banks.When making credit decisions,we should fully measure the compliance of enterprises with laws and regulations,take them as an important basis for green credit,promote the development of green credit for environmental protection enterprises,reduce the damage to environment and resources,and commercial banks can give environmental protection enterprises certain advantages and regulations Preferential policy can also set up the threshold of environmental access in the process of green credit business,and reduce the risk of credit loan on the basis of environmental protection.In the process of green credit,commercial banks should allocate funds reasonably and efficiently as possible,and realize orderly,healthy and long-term development of commercial banks on the basis of reasonable distribution.Green credit is still in the initial stage of development in China.Whether green credit can affect the performance of banks is generally concerned by scholars and experts.If green credit is conducive to the development of banking,the state should vigorously develop green credit business.This paper takes the influence of green credit on the commercial bank performance as the research object.On the basis of expounding the basic theory of green credit and the basic theory of commercial banks’ green credit,the paper combines the profitability and risk of the bank,and makes empirical analysis by using regression model to get the concrete influence of green credit on the commercial bank performance.This paper selects the data of 18 influential commercial banks from 2008 to 2019,and selects the Listed Commercial Bank Pudong Development Bank for specific analysis.Based on the empirical analysis results,the paper puts forward some reference suggestions for promoting the development of green credit business in China.It is hoped that the suggestions can improve the profitability and reduce risks of banks in the process of developing green credit,so as to make the development of green economy more unimpeded and the country will go on the road of sustainable development faster.