Study On The Impact Of Green Credit On Business Performance Of City Commercial Banks In East China

With the continuous advancement of economic integration,in order to quickly adapt to the trend of financial innovation,countries focus on economic innovation and financial system transformation.Green economy has gradually become the focus of the development of various economies.The “14th Five-Year” development plan regards “carbon peak,carbon neutralization” as the first vision of China’s current pollution prevention and control battle.Because the prevention and control of environmental pollution has attracted public attention,green finance plays an important role in realizing green economic transformation and winning the battle of pollution prevention and control.Green credit aims to curb the excessive development of two high and one surplus industry through the banking system,so as to achieve the role of energy conservation and emission reduction.Based on the above background,this paper firstly theoretically expounds the equator principle,“carbon peak,carbon neutralization”,green finance,green credit and the measurement standards of commercial banks operating performance.Secondly,after analysis and discussion,it is determined that profitability,asset management ability and growth ability are the main factors to evaluate the operating performance of urban commercial banks,and the theoretical influence of the issuance of green credit on these three factors is expounded.Then,the regression model is constructed and the robustness test is carried out.Finally,the results of the model are discussed combined with the robustness test,and the corresponding countermeasures and suggestions are given.In the empirical aspect,this paper sorts out the data of green credit and financial assets of urban commercial banks in East China from 2010 to 2020,and discusses the impact of green credit on the performance of urban commercial banks by constructing panel regression model.The statistical results are as follows:(1)The amount of green credit is inversely proportional to the return on assets of the banks studied,and the development of green loan projects has no significant positive impact on the profitability of major city commercial banks in East China;(2)Green credit is inversely proportional to the non-performing loan rate of city commercial banks,and the development of green credit helps to improve the asset management ability of city commercial banks in East China,but over time,asset management capacity decreases;(3)The amount of green credit is linearly proportional to the growth rate of net profit of urban commercial banks,and the development of green credit has an important positive impact on the growth and development ability of urban commercial banks in East China,Over time,growth will be weakened by the issuance of green credit.Finally,according to the characteristics of urban commercial banks and the development status of green credit,combined with the results of empirical analysis,the corresponding policies and suggestions are given from the bank level and the government level.For urban commercial banks,they should strengthen the publicity of green credit and actively assume social responsibilities;optimizing the organization structure of green credit and cultivating green credit talents;implement diversified green credit products,increase customer selectivity;prevent green credit risk,formulate risk management regulations.For the government,it is necessary to formulate and improve unified market standards and laws and regulations,establish and improve green credit constraint incentive policies,simplify and improve green credit issuance and disclosure policies,and strengthen and improve green credit supervision and management.