Research On The Impact Of Green Credit On The Operating Performance Of Commercial Banks

Due to the continuous development and growth of China’s industrial economy,pollution problems emerge one after another,which not only greatly reduces people’s quality of life,but also becomes a difficult problem on the road of my country’s economic growth.Under such social reality,my country has also actively taken measures to clearly put forward the development strategies of "carbon peaking" and "carbon neutrality".At present,governments around the world are actively using various financial tools to realize resource allocation and control the occurrence of environmental risks from the root.Green finance plays a key role in the process of green transformation and the realization of the "dual carbon" goal.Among them,green credit,as the most important way of green finance,has been paid more and more attention.Therefore,from the perspective of green credit,this paper selects the Industrial Bank,which was the first in my country to join the Equator Principles,as the research object,and deeply explores the impact of green credit on the business performance of commercial banks.This paper first expounds the research background and research significance of the selected topic,and then comprehensively and systematically summarizes the relevant literature review,then summarizes the concept,process and characteristics of green credit,and elaborates on the theories that will be used later.This paper discusses the impact mechanism of green credit on commercial banks’ operating performance from three aspects: profitability,asset quality and growth ability.On this basis,a total of 25 banks were selected from the three dimensions of state-owned banks,joint-stock banks,and city commercial banks as research samples for empirical analysis.The study found that:(1)In a short period of time,green credit will bring great benefits to banks.Positive impact,but relatively weak;in the long run,green credit can create more profits for banks and has huge room for development.(2)The development of green credit cannot effectively improve the asset quality of commercial banks,mainly because most of the current green credit business service targets are small and medium-sized enterprises,and the bank’s risk control system in green credit is not perfect.(3)The development of green credit cannot enhance the growth ability of commercial banks,because financial institutions will restrict the bank’s loanable funds,and the environmental protection project cycle is long,so that banks do not have enough funds to expand new businesses.Next,select Industrial Bank as the main body of analysis to discuss the relevant situation of Industrial Bank’s green credit.Firstly,the internal and external reasons for the development of green credit are analyzed,which are mainly based on the current national policy inclination,the external reasons for the large green credit gap,the actual needs of its own transformation and development,the internal reasons for effectively avoiding social and environmental risks,and fully highlighting international competitive advantages.;Secondly,the development overview of green credit is expounded from five aspects: development history,management system,development model,products and services,and business conditions;It is found that the implementation of green credit business will indeed have a significant effect on the operating performance of Industrial Bank.Therefore,based on the empirical analysis results of 25 commercial banks,combined with the actual situation of Industrial Bank,this paper summarizes and summarizes the problems encountered by my country’s banking industry in the development of green credit.Corresponding countermeasures and suggestions are put forward.