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

The report of the 20th National Congress of the Party emphasized the importance of green development and proposed to accelerate the green transformation of the development model.Green credit is one of the important ways to promote economic green transformation and realize economic green development.As the main body of green credit,commercial banks should discuss how to maximize the degree of environmental protection and the efficiency of green credit.Firstly,based on the equator principle,industrial structure theory and environmental risk management theory,this paper discussed the mechanism between green credit and the financial performance of commercial banks.According to the theories,this paper put forward major research hypotheses.Secondly,this paper selected 36 commercial banks from 2008 to 2021 as samples to study the impact and mechanism of green credit on the financial performance of commercial banks.High capital adequacy can provide liquidity support for commercial banks to meet the green credit demand that may arise at any time,and we must consider the green development environment of commercial banks when studying the economic effect of green credit.This paper tested whether capital adequacy and regional green development were conducive to strengthening the effect of the green credit.Further,in the logical order of the internal and external environment,this paper studied the difference in the impact of green credit on the financial performance of commercial banks under different bank attributes,different levels of risk bearing,different levels of financial innovation,different operating efficiency and different levels of regional economic development.This paper drew the following conclusions: firstly,the implementation of green credit has promoted the improvement in the financial performance of commercial banks.Secondly,capital adequacy and regional green development can positively regulate the relationship of green credit and the financial performance of commercial banks.Thirdly,compared with the national commercial banks,commercial banks with low levels of risk bearing,commercial banks with low levels of financial innovation,commercial banks with low operating efficiency and commercial banks with low levels of economic development,the green credit played a more positive role in financial performance of the national commercial banks,commercial banks with higher levels of risk bearing,commercial banks with higher levels of financial innovation,commercial banks with higher operating efficiency and commercial banks with higher levels of economic development.Based on the research conclusion,this paper puts forward the following three policy suggestions: Firstly,commercial banks must completely realize the importance of implementing the green credit,improve the enthusiasm and initiative for green credit and win the first mover advantage.Secondly,the capital adequacy ratio and regional green development should be improved,so as to make good use of the green credit to further improve the financial performance of commercial banks.Thirdly,in view of the difference in the implementation effect of green credit,commercial banks should improve the levels of financial innovation,risk bearing and operating efficiency.In view of different attributes of commercial banks and the different levels of regional economic development,relevant departments should implement different management.