Research On The Impact Of Green Credit On The Performance Of Listed Commercial Banks In China

Green Finance is a significant development strategy of China in recent years.Then,at the two sessions in 2021,China announced that we will strive to achieve the goal of carbon dioxide peak and carbon neutralization by 2030 and 2060.It can be seen that China attaches importance to the environment and ecology.In the process of promoting the green transformation of China’s financial industry,along with the change of the financial market,relevant departments have issued a number of guidance documents on green credit business,which has formed a forced mechanism for the profit increase of domestic listed commercial banks and put forward higher requirements.As commercial banks are engaged in the operation of the capital market and occupy the main position,how to deal with the impact brought by the green credit policy is what they need to be faced and solved.At the same time,the attitude of China’s listed banks to start green credit business also depends on how the development of this business will affect their profitability.It can be seen that studying and judging the development of green credit has great reference value for the profit forcing mechanism of financial market subjects,that is,the impact on bank performance.The introduction part of the article is to sort out and elaborate the academic history of green credit and commercial bank performance related research,define the related concepts,and analyze the theory and background of related research.In the empirical analysis stage,firstly,based on the financial data and green credit panel data of 14 banks in China with complete data from 2011 to 2020,this paper constructs the model and makes empirical analysis to study the impact of green credit on the performance of listed commercial banks in China.Then,this paper selects the indicator of green reputation to study the impact of green reputation on bank profitability,and uses a variety of methods to analyze the intermediary effect of green reputation in the impact mechanism of green credit.In addition,this paper also makes a heterogeneity analysis from multiple dimensions to further analyze the differences of the impact of banks with different property rights,non-performing loan ratio,capital adequacy ratio,deposit loan ratio and scale.At last,this paper puts forward some suggestions based on the theoretical analysis and empirical results.From the empirical results,we can see that the impact of bank issuing green credit on its profitability is negative.But green reputation plays a significant intermediary role in the process,which has a certain reversing effect on its negative impact.Moreover,the negative impact of green credit on the performance of state-owned banks,low non-performing loan ratio,low capital adequacy ratio,low deposit loan ratio and small-scale banks is smaller.Therefore,the government should improve the incentive and supervision mechanism of green credit,increase the level of environmental information disclosure.And banks should improve their loan audit ability,asset management ability and risk control ability,and strengthen the innovation and publicity of green financial products,enhance the green reputation of banks,and strive to become the leader of green finance to improve performance.