Impact Of Green Credit On The Operating Performance Of Commercial Banks

In recent years,with the increasing development scale of green credit in China,the impact of green credit on the operating performance of commercial banks has attracted more and more attention.At present,scholars at home and abroad have carried out a series of work on the impact of green credit on the operating performance of commercial banks,but they have not formed a unified understanding.Based on this,on the basis of theoretical analysis,this paper selects the panel data of 16 commercial banks in China from 2010 to 2020 as the sample data to carry out empirical research and quantitatively analyze the impact of green credit on the operating performance of commercial banks.Firstly,this paper summarizes the relevant research on the impact of green credit on bank performance at home and abroad,and defines the research direction of this paper.Then it analyzes the current situation of green credit development of China’s commercial banks from the aspects of green credit scale,green credit products,green credit effectiveness,green credit field and green credit system,and summarizes the problems existing in the development of green credit of China’s commercial banks.This paper discusses the basic theories of this paper,including corporate social responsibility theory,environmental risk management theory,sustainable development theory and environmental economics theory.On this basis,this paper discusses the impact mechanism of green credit on bank performance from three aspects:profitability,security and growth.Based on the above analysis,empirical research is carried out.Build a bank operating performance evaluation index system,apply factor analysis method to evaluate the bank operating performance,take the bank operating performance as the explanatory variable,take the green credit balance as the explanatory variable,and take the economic development level,bank asset scale,non-performing loan ratio and deposit loan ratio as the control variables to build a measurement model of the impact of green credit on bank operating performance,Carry out empirical research.The study found that green credit has a significant impact on bank performance,but the impact is small.The main reason is that the development of green credit in China is still in the primary stage,the supporting measures such as relevant laws and regulations are not perfect,and the lack of innovation of green credit products leads to the fact that the positive impact of green credit on the operating performance of commercial banks is not fully reflected.At the same time,the results show that the impact of green credit on the operating performance of different commercial banks is significantly different.Green credit has no significant impact on the operating performance of state-owned commercial banks.The main reason is that state-owned commercial banks will give up part of their profits based on social responsibility.Green credit has a significant positive impact on the operating performance of joint-stock commercial banks and urban commercial banks.Finally,based on the research understanding of this paper,this paper puts forward some reasonable suggestions for the development of green credit in China from the national level,local government level and commercial bank level.