Research On The Impact Of Green Credit On The Liquidity Of Commercial Banks

In the context of economic globalization,the destruction of the natural ecological environment is prominent,which seriously hinders the sustainable development of the global economy and society.In recent years,countries have gradually introduced policies to support green finance,industrial transformation and development,etc.,in order to achieve the sustainable development of economy,society and ecology.In this context,China has proposed a green credit policy,encouraging commercial banks to actively develop green credit,strengthen the credit review of high-pollution,high-emission projects or enterprises,and reduce financial support,guide funds to invest in green projects or enterprises,and promote the development of green industries.However,green credit projects have the characteristics of longer investment cycle and stricter regulatory requirements,which are more likely to lead to the mismatch of the maturity of assets and liabilities of commercial banks,which directly affects the liquidity level of banks,so there is a contradiction between green credit and banks maintaining liquidity,so it is necessary and of certain research significance to explore the impact of green credit business on the liquidity of commercial banks.By combing and summarizing the relevant literature,it is found that green credit has a dual impact on the liquidity of commercial banks:on the one hand,green credit projects are mostly medium and long-term projects,and the return period is usually longer,while the liabilities of banks are mostly short-term deposit-absorbing,so it will aggravate the degree of liquidity term mismatch and directly reduce the liquidity level.On the other hand,the green credit business carried out by commercial banks will help improve the reputation and competitiveness of banks,improve banks’ ability to absorb deposits,and are more likely to receive tax incentives and subsidies from the government for positive externalities,reducing banks’ financing costs.In addition,the green credit business will prompt commercial banks to continuously improve the risk management system,rationally adjust the credit structure,effectively improve the overall quality and level of assets,improve the asset value and liquidity of commercial banks,and have a positive impact on liquidity.Therefore,exploring and analyzing the net impact effect and impact mechanism of green credit on the liquidity of commercial banks in China is the research goal of this paper.This paper first objectively describes the development process and current situation of green credit in China,compares mature green credit policies abroad,and summarizes the existing problems of green credit in China.Secondly,according to the relevant literature and theory,the influence mechanism of green credit on the liquidity of commercial banks is analyzed in detail,and put forward corresponding hypotheses.Then,a time-varying liquidity mismatch index is constructed to measure the explanatory variables,and the appropriate control variables and empirical models are selected.Finally,this paper selects the quarterly panel data of 42 banks from 2006 to 2021,uses the PSM-DID model for empirical evidence,analyzes the net impact of green credit policies on the liquidity of commercial banks from both short-term and long-term dimensions,and conducts mechanism testing and heterogeneity analysis.According to the empirical results,the green credit policy has a negative impact on banks’ liquidity in the short term,but both the reputation mechanism and the credit risk management mechanism weaken the negative effect.In the long run,it has a stronger positive effect on liquidity,and the influence mechanism strengthens the positive effect more strongly.From the perspective of heterogeneity,since large commercial banks may sacrifice their own interests in response to national policies and implement green credit to a higher extent,the negative impact of green credit policies on their liquidity in the short term is much greater than that of j oint-stock banks and city commercial banks.The longterm implementation of green credit has promoted the liquidity of all three types of banks.Finally,based on this,this paper puts forward suggestions for banks and governments:for banks,on the one hand,strengthen the innovation of green financial products to meet various needs and dilute risks;On the other hand,strengthen the training of relevant professional talents and improve the green credit review and supervision mechanism.For the government,first,clearly define environmental responsibilities and unify green credit recognition standards;Second,establish and improve incentive mechanisms to encourage banks to implement green credit;Third,improve the information disclosure system and establish an information sharing mechanism between banks and enterprises.