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

Under the new development concept,China has paid more attention to a series of problems such as environmental damage caused by economic development in the process of rapid development and transformation of economy,society and environment.In order to promote China’s sustainable development and industrial transformation and upgrading,financial institutions need to use green credit to change resource allocation and give full play to the leverage role of financial institutions.Therefore,this paper takes Industrial Bank,a leader in the field of green credit,as the research object,and focuses on the impact of green credit on bank operating performance? What is the mechanism of the impact of green credit on the performance of Industrial Bank?In the part of industry analysis,it combed the development process of government related green credit policies,compared the implementation of green credit and green credit product innovation among different commercial banks,elaborated the internal and external reasons for commercial banks to implement green credit,and clarified the mechanism of green credit on commercial banks.The research finds that there are two main reasons for commercial banks to implement green credit: internal interest drive,external government policy guidance,and green industry financing demand.The mechanism of green credit on business performance mainly affects the cost and income in business through cost effect,reduces the loan amount of "two high and one surplus" enterprises through risk structure effect,improves the loan amount of emerging green environmental protection enterprises,and affects market performance through reputation effect.In the case analysis part,the basis for case selection is explained,the input-output efficiency of green credit of the case bank in the same type of commercial banks is measured,the financial performance part is analyzed by building a financial analysis framework,and the market performance part is analyzed by using the event study method.Research findings:First,the comprehensive efficiency of state-owned banks in implementing green credit is higher than that of joint-stock commercial banks,while Industrial Bank is the leader among joint-stock commercial banks,and the existing scale of green credit of Industrial Bank is still in the stage of increasing returns to scale.Therefore,Industrial Bank can increase its investment in green credit.Second,for the financial performance impact,the impact of green credit is reflected in profitability indicators,security indicators and liquidity indicators.After the implementation of green credit,the profitability indicators and security indicators of Industrial Bank showed a U-shaped overall.The profitability and anti risk ability showed a downward trend in the early stage due to the impact of cost effect and risk structure effect,and improved with the expansion of green credit scale in the later stage.Third,as for the market performance impact,the A-share market gave an effective response to the event that Industrial Bank joined the "Equator Principles" to implement green credit.Investors in the market believed that the introduction of green credit business by Industrial Bank would have a positive impact on the company’s future business activities,and investors were generally optimistic about the prospect of green development.