The Influence Of Green Credit On The Competitiveness Of Chinese Commercial Banks

Since the 13th Five-Year Plan,the concept of green development has become familiar to the public.With the rapid development of economy,environmental problems brought by extensive economic development in the past can not be underestimated.How to balance economic development and ecological environment is the main problem facing the transformation and upgrading of economic development.Commercial banks play an important role in the economic system.To solve this problem,green credit business emerges at the historic moment.As an innovation of commercial banking,green credit plays an important role in promoting the competitiveness of commercial banks and sustainable development.This paper establishes an index system to measure the competitiveness of commercial banks,analyzes the traditional "three characteristics",and creatively puts forward growth indicators to measure the future development potential of commercial banks.Different commercial banks also have a large gap in the scale and implementation of green credit business.Because green credit requires a large investment and a long cycle,it will take a period of time for the benefits to be effective,which will cause the implementation of green finance policy to be greatly reduced and unsatisfactory.Although green credit plays a vital role in sustainable economic development,whether commercial banks,the main structure of the introduction of green credits is a sufficient incentive for policy implementation,which to some extent determines the impact of green credit policy implementation.This paper therefore investigates the impact of the introduction of green credit on the overall competitiveness of commercial banks as a starting point.Through the analysis of relevant theories,this paper explains the different mechanisms of green credit and conventional credit that affect the competitiveness of commercial banks and proves its conclusions through empirical analysis.Regarding data selection,this paper selects 16 listed banks as research subjects,analyzes data from 2013 to 2021,and obtains competitiveness indices for 16 commercial banks through principal component analysis.Then,robustness tests,Hausman tests,and random effects models will be conducted.Then,regression analysis is conducted for the entire banking sector,five state-owned banks,and 11 joint-stock banks,respectively,to determine the degree of impact of green credit on the competitiveness of different types of commercial banks.The empirical analysis shows that green credit is positively correlated with the competitiveness of commercial banks,and that the impact of green credit on the competitiveness of the five state-owned banks is greater than the impact of green credit on the competitiveness of joint-stock commercial banks.Finally,based on the analysis conducted in this paper,we formulate measures and proposals for green credit in a sustainable manner.