Research On Risk Management Of Commercial Banks Based On Green Credit

Risk management of commercial banks is a complex systematic project,and it is an important subject for the long-term development of banks to effectively prevent and control bank risks.At present,China is on the road of green economic transformation,and green finance brings great development opportunities for banks’ development.While green credit pays attention to environmental protection and social responsibility,it also pays attention to the quality of loans,reduce the loans of "two highs and one surplus",thus improving the security of bank assets.What is to be discussed in this paper is to explore the path of bank risk management from the perspective of green credit,to ensure the smooth implementation of risk management and to improve the effectiveness of bank risk management.In this thesis,the related literatures about green credit and bank credit risk at home and abroad are sorted out,based on theoretical analysis,research hypotheses are put forward,and the influence of green credit on bank risk is empirically studied by using dynamic and static panel models.Combing the transmission path of this mechanism provides direction for bank risk management.This paper selects 36 commercial banks from 2007 to 2021 as samples,and the research results show that there is an inverse relationship between green credit and bank risk,and increasing green credit can reduce the risk of commercial banks.Through the mechanism analysis,it is found that this influence can be realized through two ways: first,the quality of assets,green credit is more invested in energy-saving and environmental-friendly high-quality assets,reducing the loans of heavily polluting enterprises,thus reducing the non-performing rate of banks and thus reducing the risks of banks;Second,non-interest income.Commercial banks actively explore new green credit products,earn non-interest income by providing services such as environmental assessment and information,broaden the income of intermediary business of banks,and then reduce bank risks.Through heterogeneity analysis,the effects of different banks are quite different.This paper selects Industrial Bank analyzes the development process of green credit in Industrial Bank,explores the reasons behind the risk management of green credit,financial situation and capabilities,and deeply discusses the risk management,providing reference for other banks.Finally,this paper makes suggestions for the risk management of green credit from the aspects of improving the risk early warning ability of green credit and perfecting the supervision system of bank green credit business.