Motivation And Effect Of Green Credit In Commercial Banks

After the reform and opening up,China’s economy has developed rapidly,but the extensive development model of the past has brought rapid economic development but also caused serious ecological and environmental problems.At present,the transformation of China’s economic system is accelerating,promoting the green development of the economy,and commercial banks are an indispensable part of China’s economic operation,and they should shoulder their social responsibilities and always adhere to the concept of sustainable development.At present,many countries around the world have adopted "source control" to avoid environmental risks and promote the development of a green economy,and preventing and reducing risks at the source is an effective means.As far as China’s current development is concerned,green credit is the main part of China’s green finance development,and with the introduction of relevant policies,the vigorous development momentum of green credit business has begun to appear.However,at present,there are still some problems in the development of green credit in China,although most of China’s commercial banks have corresponding green credit business,but the distribution of green credit is extremely unbalanced,most of them are concentrated in large state-owned commercial banks.Compared with foreign countries,China’s green credit started late,the research content is relatively single,and the corresponding supporting facilities are not perfect.Therefore,studying the motivation and effect of Shanghai Pudong Development Bank to carry out green credit can better help joint-stock commercial banks of the same type to carry out green credit business,promote their enthusiasm for green credit business and provide corresponding experience for reference,which has certain theoretical and practical significance.SPD Bank not only has a large number of green credit loans,but also maintains rapid growth in total loans,and has always maintained the scale of green credit business in line with its own development positioning,which can provide a more reference template for other non-state-owned commercial banks.Based on the above background,this paper selects SPD Bank’s green credit business as a case,focuses on the internal and external drivers,and analyzes the motivation of SPD Bank to develop green credit business.As far as the internal reasons are concerned,the development of green credit business is based on the green development strategy deployment of Shanghai Pudong Development Bank,and makes full use of its own advantages,makes scientific decisions,and uses the development of green credit to better assume corporate social responsibility,so as to improve the profitability of the bank,reduce the level of credit risk and enhance its competitiveness in the industry.As far as external reasons are concerned,SPD Bank’s green credit business is inseparable from the incentive and promotion of national policies,and it is also optimistic about the huge development space of green financing demand.SPD Bank has a keen insight into policy orientation and opens up new markets under the guidance of national macroeconomic policies,thereby fighting in the increasingly fierce competition among peers,and thus clarifying the necessity of commercial banks to carry out green credit business.Then,on the basis of the above,the effect of SPD Bank’s deep cultivation of green credit is analyzed from three perspectives:financial efficiency,social environment and self-development.The results show that at the level of financial efficiency,the development of green credit business has significantly improved the profitability and asset quality of SPD Bank,and the bank’s asset liquidity capacity has also been correspondingly improved from a long-term perspective.At the social and environmental level,SPD Bank’s green credit business can effectively reduce resource consumption and pollution emissions,and play an obvious role in promoting energy conservation,emission reduction and resource and energy conservation.For its own development,the development of green credit optimizes the customer resource structure of SPD Bank,enabling it to win more voice in the field of green finance and enhance its social reputation and status.Finally,on the basis of the above,the excellent experience of the green credit business development process of SPD Bank is summarized,and corresponding enlightenment is put forward for government departments,the same industry and SPD Bank itself.