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

In the traditional quantitative growth model,China’s rapid economic development,but this growth will also bring problems,such as ecological damage,environmental pollution.As the catalyst of green economy development,green finance has the function of promoting green investment and financing,optimizing industrial structure and so on.Based on the concept of "carbon peak" and "carbon neutral",green finance will surely further improve the business returns of commercial banks and encourage them to provide more innovative green financial products and services.Green credit is a new financial tool of commercial banks,which plays an important role in promoting the development of green economy.Its implementation,not only can phase out "two high one surplus" enterprises,but also can promote enterprises to energy conservation and environmental protection direction,speed up the transformation of the green economy.To encourage commercial banks to actively implement green credit,first of all,it is necessary to ensure that green credit can bring profits to commercial banks,and financial performance can reflect their profits,therefore,it is necessary to study the impact of green credit on the financial performance of China’s commercial banks.This article first elaborated the research background and the significance,summarized this article main content,and combs the domestic and foreign literature.Secondly,five theories related to green credit,financial performance and social reputation are discussed to provide theoretical basis for this paper.Then it examines the current development of green credit and the operation of commercial banks.It is found that green credit is generally good,but some commercial banks have relatively low enthusiasm to develop green credit,there is also room for improvement in financial performance.On this basis,the paper discusses the related mechanism of green credit,financial performance and green reputation,and puts forward the corresponding research hypothesis.In the empirical aspect,this paper selects the data of 34 commercial banks in China from2007 to 2020 as a sample,the results show that,to some extent,green credit is beneficial to improve financial performance,and the two have mutual influence;The micro-characteristics of banks play a certain role in regulating and controlling the two,and the green reputation is the intermediary effect between them.The robustness test of the model proves that the empirical results have certain credibility.Finally,according to the results of the empirical analysis and the problems in the process of implementing green credit,the paper puts forward some suggestions to improve the internal incentive mechanism and related information disclosure mechanism.It is expected that this study will further stimulate the enthusiasm of Chinese commercial banks for green credit,promote the development of green credit in China,and improve the financial performance of banks,this is conducive to the social responsibility and sustainable development of commercial banks.