Research On The Motivation And Effectiveness Of Green Credit Business Of Industrial Bank

In recent years,the problem of environmental pollution and ecological damage caused by the rough economic development model has aroused great concern of the country.In 2018,the construction of "beautiful China" and ecological civilization was written into the Constitution;in 2021,the State Council issued the "Guiding Opinions on Accelerating the Establishment of a Sound Economic System of Green,Low-Carbon and Circular Development",requiring China to vigorously develop green finance.How to use government resources to guide the flow of funds to green industries so as to promote sustainable development is an important issue that needs to be addressed at this stage in China,and green development has been elevated to the level of national strategy.Green credit,as the main force of green finance,has been expanding in recent years,making outstanding contributions to solving the problem of difficult and expensive financing for green enterprises in China and effectively promoting the sustainable development of China."During this period,commercial banks,represented by Industrial Bank,have responded to the call and actively explored the path of green credit development.Through more than a decade of efforts,China’s green credit business has developed rapidly,and by 2021,the scale of green credit in China ranked first in the world.As China’s sustainable development continues to deepen,the country has introduced a series of policies to guide enterprises to engage in environmental protection industry,and the financing demand of green industry has increased.As a pioneer of green finance in China,Industrial Bank has been actively exploring green credit business at the early stage when the country advocates green development,actively carrying out international cooperation and striving to learn from advanced foreign experience.As a joint-stock bank with the goal of maximizing profits,Industrial Bank has taken the initiative to develop green credit business and expand the scale of green credit,becoming the only joint-stock bank in China whose green credit scale exceeds that of state-owned banks.This paper first analyzes the reasons for the development of green credit business of Industrial Bank,mainly in two aspects: intrinsic reasons and extrinsic reasons.In terms of the intrinsic reasons,the development of green credit business is a scientific decision made by Industrial Bank according to its green development strategy and combining its existing advantages and conditions.In terms of external reasons,Industrial Bank’s green credit business cannot be carried out without the encouragement and promotion of national policies and the pressure brought by public supervision.Then,we analyze the effects brought by the green credit business of Industrial Bank and find that for Industrial Bank,the green credit business can indeed improve the profitability of Industrial Bank,reduce the non-performing loan rate of Industrial Bank,and win more discourse for Industrial Bank in the field of green finance;for the ecological environment,the green credit business of Industrial Bank can effectively save resources and energy and reduce the emission of pollutants.It has a significant effect on promoting energy conservation and emission reduction and resource and energy conservation.Finally,we analyze the problems in the development of green credit business of Industrial Bank and put forward suggestions.