Research On The Impact Of Green Credit On The Credit Risk Of Commercial Banks In China

From the elaboration of the Government’s Work Report on this year’s key work,the important role of green finance in supporting the expansion of domestic demand,supporting the construction of a modern industrial system,supporting the revitalisation of the countryside and supporting the green transformation of development methods should be highlighted in 2023.Finance is an effective means to improve the efficiency of resource allocation.How to organically combine the green concept with finance to guide the allocation of funds so that they flow to green industries and low-carbon economy and stop credit funds from flowing to high-pollution and high-emission industries to achieve sustainable economic and social development transformation is a new topic worth studying.Against this background,green credit has been spawned.At the same time,with the promotion of green finance,the effect of green credit in promoting economic growth has become increasingly evident.Again,because of the special nature of the banking sector’s operations,risk is also an important consideration.In addition,the differences in the level of green development in each region may also have an impact on the above relationship.Based on this,the article first analyses the definition and classification of green credit,and compares the relevant domestic and international literature from three perspectives: green credit-related research,research on the impact of green credit on commercial banks’ credit risk,and the impact of green credit on regional green financial development,and further explores the relationship between green credit and commercial banks’ credit risk on this basis,and finally uses panel data to empirically test the Finally,we use panel data to empirically test the mechanism of mutual influence between the two.This paper selects 25 commercial banks in China(5 large state-owned banks,8 from the Government Work Report on this year’s key work,2023 to highlight the important role of green finance in supporting the expansion of domestic demand,supporting the construction of a modern industrial system,supporting rural revitalisation and supporting the green transformation of development methods.Finance is an effective means to improve the efficiency of resource allocation.How to organically combine the green concept with finance to guide the allocation of funds so that they flow to green industries and low-carbon economy and stop credit funds from flowing to high-pollution and high-emission industries to achieve sustainable economic and social development transformation is a new topic worth studying.Against this background,green credit has been spawned.At the same time,with the promotion of green finance,the effect of green credit in promoting economic growth has become increasingly evident.Again,because of the special nature of the banking sector’s operations,risk is also an important consideration.In addition,the differences in the level of green development in each region may also have an impact on the above relationship.