The Impact Of Green Credit On Competitiveness Of Commecial Banks

Despite the rapid development of domestic industry,its damage to the environment is increasingly serious.The state takes protecting the environment as the national policy accordingly to deal with this problem.To be specific,On the issue of capital demand in green development,the state has issued related green credit policies,which require commercial banks to take the proportion of the flow of funds to environmental protection projects as an important standard in loan issuance.At the same time,whether green credit businesses will have an impact on bank competitiveness has aroused heated discussion.From the point of view of green credit businesses,this paper studies the impact of green credit on bank competitiveness.What’s more,it studies the mediating effects of green reputation and risk management.In the theoretical analysis,this paper first discusses the meaning of green credit,combs the relevant research on the impact of green credit on competitiveness of commercial banks,and then analyses the development of domestic green credit.More importantly,this paper summarizes the mechanism of green credit on bank competitiveness and the mediating effects of green reputation and risk management.In the empirical analysis,this paper selects 16 sample banks.It measures the dependent variable bank competitiveness through the factor analysis and takes green credit scale as the independent variable.Furthermore,this paper takes green reputation and risk management as mediators,establishes the mediating effect model,and finally makes clear the impact of green credit on the competitiveness of commercial banks and the mediating effects.The results show that the larger the scale of bank green credit,the stronger the competitiveness of commercial banks,which means that there is a positive correlation between them.After adding mediating variables into the original model,Sobel test is used to test the mediating effect.In the end,this paper verifies the mediating effects of green reputation and risk management.Finally,based on the empirical results and the specific situation of domestic banks carrying out green credit businesses,this paper puts forward relevant suggestions to improve the competitiveness of banks in the process of green credit from the perspective of the government,enterprises and commercial banks,so as to realize the long-term development of the banking industry.