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

As one of the largest carbon emission countries in the world,china has put the transformation of its economic development mode into the report of the 19 th National Congress of the Communist Party of China.The popularization of the concept of green development is in full swing,ensuring that the construction of ecological civilization under the premise of economic growth has become an important goal in the new era,and the promotion of green credit development is an important basis for achieving this goal.The government has accordingly issued a series of work to promote green credit construction.Many commercial banks have also responded to the call for the policy documents of the People’s Republic of China,but some banks are lagging behind.Therefore,research on how green credit banks operate is helpful to promote the better development of green credit policies,which is of practical significance.First,the article analyzes the research background and significance of green credit,then introduces the research status of green credit around the world,and defines related concepts.The improvement of bank profitability while reducing credit risk and improving credit structure are defined as the definition of operating performance improvement.The research ideas and content of the thesis are discussed.Subsequently,it analyzed the theoretical basis of green credit from the perspectives of the Equator Principles and the Theory of Sustainable Development.On this basis,the three-party game model of banks,enterprises,and the government was used to in-depth explore the respective motives of the three parties in the green credit market.Provide theoretical support for empirical research.Then it analyzes the development process of china’s green credit and the problems encountered in the development process.Finally,based on the above analysis,corresponding hypotheses are put forward to empirically study the relationship between green credit and the operating performance of listed banks in china.The article constructs an empirical model based on the data of 17 large listed commercial banks in china from 2011 to 2019.From the perspectives of profitability and credit risk,it explores the role and impact of green credit,and explores the role of green credit in different ownership and incentives for bank operating performance based on the Equator Principle.The empirical results show that: 1.The introduction of green credit by commercial banks can generate positive incentives for profitability.Among them,green credit provides higher incentives for state-owned banks’ profitability than non-state-owned banks;green credit also provides higher incentives for Equator principle banks’ profitability Equator Principle Bank;2.Commercial banks’ implementation of green credit can effectively reduce the bank’s nonperforming loan rate,thereby reducing bank credit risk;although the increase in the proportion of green credit can reduce the state-owned bank’s non-performing loan rate,it is not significant.Non-state-owned banks can pass The increase in the proportion of green credit has significantly reduced the non-performing loan rate;green credit has less effect on the credit risk suppression of Equator Principles banks than non-Equator Principles banks.At the end,from the four perspectives of "improving policies","legal guarantees" and "sufficient incentives",and "talent training",we put forward suggestions to promote the improvement of china’s green credit construction.The novelty of this article is to summarize the research of many scholars,combine the tripartite game with empirical analysis,enrich the theoretical analysis with the tripartite game,explain the connotation of operating performance from the perspective of profitability and credit risk,and enrich the empirical content.