The Impact Of Green Finance On The Operating Performance Of Commercial Banks

Since the beginning of the 21st century,China’s economy has been developing rapidly,and at the same time,the ecological environment has been damaged to a deeper extent.How to solve the contradiction between rapid economic development and ecological environmental protection has become an urgent task for China,and green finance as a bridge between economy and environmental protection has become the key to solve the contradiction between the two.However,it has been more than ten years since the green finance business was launched in China,but the green finance policy implemented by commercial banks in China is mainly reflected in green credit,and the green finance products are relatively single,even so,the percentage of green credit in the total loans of commercial banks in China is not high,and the percentage of green credit of most commercial banks is less than 10%,which shows that the banking financial institutions in China lack the subjective The green credit ratio of most commercial banks is less than 10%,which indicates that the banking financial institutions in China lack the initiative to carry out green financial business.Considering that commercial banks are profit-oriented special enterprises,whether or not to carry out green finance depends largely on its impact on the business performance of commercial banks.This paper conducts an in-depth study on the influence mechanism between green finance and commercial banks’ business performance by sorting out the relevant concepts and theoretical foundations of green finance.In addition,to further verify the promotion effect of green finance on commercial banks’ business performance,this paper also conducts an empirical study to further verify the above conclusions.Subsequently,this paper briefly introduces the development process of green finance in Changsha banks,the current situation and some problems that still exist in the development of green finance in Changsha banks,and analyzes the motivation of green finance development in Changsha banks from both the supply and demand sides of green finance.Through the case study,it is found that green finance affects Changsha Bank’s operating costs,credit structure and bank reputation,which in turn affects Changsha Bank’s operating performance.Through the case study,the implementation of green finance policy is beneficial to the sustainable development of Changsha Bank,and there exists a certain degree of significance for other commercial banks in China.This paper proposes corresponding suggestions for commercial banks to develop green finance business:commercial banks should improve the information disclosure mechanism,improve the internal risk control system,and carry out continuous supervision of green projects through the society,which can,to a certain extent,not only prevent fraudulent behavior of commercial banks,but also effectively supervise the "greening" behavior of loan applicants;Commercial banks should vigorously cultivate and introduce green financial professionals to enhance the professionalism of green financial business;commercial banks should deepen green financial technology innovation,launch more accurate and diversified green products,and use science and technology finance as a grip to promote the long-term healthy development of green finance;relevant government departments should improve the green financial incentive mechanism and strengthen external supervision to fully mobilize commercial banks to carry out green financial business.The relevant government departments should improve the incentive mechanism of green finance and strengthen external supervision to fully mobilize the subjective initiative of commercial banks to carry out green finance business.