Research On The Impact Of Green Finance On Business Performance Of Commercial Banks

Green finance,as a financial service concept and practice vigorously advocated by China in recent years,is an important embodiment of the country’s practice of green development and is of great significance to the development of commercial banks themselves.Based on the panel data of 36 domestic commercial banks from 2007 to 2019,this paper empirically analyzed the impact of green finance development on the business development of commercial banks,and analyzed the heterogeneity and mechanism of the impact on the development level of green finance of commercial banks respectively.The specific conclusions are as follows:(1)The development level of green finance of commercial banks has a significant positive impact on the development performance level of banks.An increase of one unit of the green credit ratio in the overall credit line of commercial banks will increase the comprehensive performance level of commercial banks by 0.163 units.(2)in this paper,according to the nature of property rights and bank types are classified,the green financial development level influence the development of bank performance heterogeneity analysis through the study found that compared with the state-owned commercial Banks,non-state-owned commercial bank in the green level of financial development to promote the effect of bank performance level is more obvious.In the local urban commercial banks,the improvement of green finance development level can significantly promote the development performance of banks,while in the national joint-stock commercial banks,the improvement of green finance development level has no significant impact on the development performance of banks.According to the classification of the use of green credit funds and heterogeneity analysis,it is found that compared with circular projects,green credit can promote the performance of commercial banks more in non-circular projects.(3)By studying the influence mechanism of green finance development level on the development performance level of commercial banks,this paper finds that the improvement of green finance development level of commercial banks can promote the improvement of the development performance level of commercial banks by restraining the non-performing loan ratio of commercial banks.