An Empirical Study On The Impactof Green Credit On The Business Performance Of Commercial Banks

The industrial revolution has brought about a huge change in the way humans live and produce,bringing convenience but also causing a series of environmental pollution and resource consumption problems,and it has become the consensus of all mankind to follow a sustainable and green development path in the future.In the report of the 19 th National Congress,General Secretary Xi Jinping once again emphasized ecological issues,pointing out that we should "accelerate the construction of ecological civilization and build a beautiful China",and all walks of life have also begun to practice the concept of "green water and green hills are golden mountains" since 2007.Since 2007,China has started to build a green credit system to promote the development of green industries in China by directing social capital to environmentally friendly projects through banking institutions.However,commercial banks,as enterprises,are bound to consider the costs and benefits of conducting green credit business,so it is significant to study the impact of green credit on the business performance of commercial banks.This paper first defines the concepts of green credit and commercial bank performance,and compares the research results on the relationship between the two at home and abroad,while elaborating on the theoretical foundations supporting commercial banks to carry out green credit business,the theory of sustainable development,the equatorial principle,the theory of corporate social responsibility,the stakeholder theory and the theory of environmental risk management.On this basis,the mechanism of the impact of green credit on the business performance of commercial banks is discussed and corresponding hypotheses are put forward.In terms of research methodology,this paper adopts a factor analysis approach to comprehensively assess the business performance of commercial banks.Through this approach,the impact of green credit on the safety,growth,profitability and liquidity of commercial banks can be verified one by one,as well as the overall impact on commercial banks.For the research sample,the data of 23 listed commercial banks from 2013 to 2019 were selected for this paper;in the empirical process,due to the unbalanced nature of the data,an unbalanced panel regression model was used to test the impact of green credit.The empirical results show that the combined impact of green credit on the business performance of commercial banks is significant and positive,including a positive impact on the growth and profitability of commercial banks,a negative impact on liquidity and an insignificant impact on safety.Based on the above findings,this paper puts forward corresponding suggestions from the government,bank supervision and commercial banks respectively,hoping to provide insights for commercial banks in China to develop green credit business and the construction of green credit system in China.