An Empirical Study On The Influence Of Green Credit Policy On The Performance Of China’s Commerical Banks

Due to the rapid development of China’s economy and society,the problems brought by economic and social development are increasingly prominent.In 2007,the State Environmental Protection Administration,the People’s Bank of China and the former China Banking Regulatory Commission jointly issued the Opinions on Implementing Environmental Protection Policies and Regulations to Prevent Credit Risks,which became the first linkage between environmental protection departments and financial departments,aiming at combining environmental supervision with credit management,marking that the idea of "green credit" was formally put forward in China.The Green Credit Guidelines issued by the People’s Bank of China on January 24 th,2012 indicates that China’s commercial banks have entered the field of green finance,guiding social funds to the national strategy of energy conservation and emission reduction.The report to the 19 th National Congress of the Communist Party of China listed the construction of ecological civilization as the national millennium Plan,and clearly stated the strategic need of developing green finance.First of all,based on the theoretical knowledge of green credit and the development status of green credit business in China,this paper analyzes the impact of green credit policy on the performance of commercial banks,including asset quality,management efficiency,profitability and social reputation.Then,the net effect of the implementation of green credit policy on the performance of commercial banks is studied by the method of propensity score matching-double difference（PSM-DID）.The results show that the performance level of large commercial banks can be effectively improved since the important policy of "Green Credit Guidelines" was put forward in 2012,and other commercial banks are better than large state-owned banks in policy effect.Based on the above analysis results,this paper puts forward some suggestions for the further development of green credit business in China.At the government level,we should promote the sustainable development of green credit policies and encourage capital,science and technology,talents and other necessary resources to invest in green finance;We should form a policy incentive mechanism that will help strengthen the strength of commercial banks,give more preferential fiscal and tax policies and loan support to commercial banks that actively implement the green credit policy,and play a green policy-oriented role.On the other hand,the implementation of green credit policy is still a self-restraint behavior for commercial banks in China at this stage.Commercial banks should actively fulfill their social responsibilities,seek to improve their green reputation and realize their own green transformation through the adjustment of credit structure.