The Impact Of Green Credit On The Financial Performance Of Commercial Banks

With China’s commitment to achieve the 2030 carbon peak and 2060 carbon neutral goals,the 19 th CPC National Congress positioned "developing green finance" as an important way to promote green economic development.The development of green finance business by commercial banks is conducive to the implementation of national principles and policies and the realization of social and economic benefits.The green financial business of commercial banks is mainly based on green credit.Carrying out green credit will have an impact on the financial performance of commercial banks.Whether carrying out green credit business is conducive to the improvement of financial performance of commercial banks and the transformation and development of green economy of commercial banks becomes important for commercial banks that are about to vigorously carry out green credit.This thesis takes XY bank,the pioneer of domestic green finance and the first "equator bank" in China,as a sample to explore the impact of green credit on the financial performance of commercial banks.This thesis uses XY bank’s social responsibility report and annual report over the years,and selects the data from 2006 to 2020 as the sample.Firstly,using theoretical analysis,this thesis analyzes the impact of green credit on the profitability,security and growth of XY bank;Thirdly,use financial index analysis to analyze the relationship between green credit and financial performance through vertical comparison with the data of XY bank over the years and horizontal comparison with the data of major commercial banks in 2020;Finally,by using the ARDL model,this thesis selects the data of XY bank from 2008 to 2020,compares the impact of green credit on the financial performance of XY commercial bank through empirical research,and explores whether there is a correlation between green credit and the financial performance of XY bank.The conclusions are as follows: green credit has a positive impact on the financial performance of XY bank,but it lags behind.In the short term,XY bank will spend a lot of human,material and financial resources to develop green finance,which will increase costs in the short term and have a negative impact on financial performance.With the continuous deepening of the development of green credit business,there is a long-term positive correlation between green credit and the financial performance of XY bank.As a pioneer in the field of domestic green finance,XY bank has certain first mover advantages.The bank attaches importance to the construction of green financial system,integrates social and risk management into various processes,and has strong professional ability and service ability;At the same time,it combed the good corporate image and improved the long-term interests of XY bank.The case of XY bank provides an endogenous driving force for commercial banks to develop green credit business.The green financial development system of XY bank has a strong reference significance for banking institutions.