Research On The Impact Of Green Credit On Credit Risk Of China’s Commercial Banks

Driven by the concept of ecological civilization and new development concepts,China is speeding up the building of a green financial system.Under the guidance of "carbon peak" and "carbon neutrality",the healthy development of green finance plays an important role in promoting high-quality economic development and high-quality development of commercial banks,and green credit is the main part of China’s green finance system.There is a significant difference between green credit and traditional credit.The key question this paper attempts to study and answer is the impact of green credit on the credit risk of commercial banks and how the impact will change after considering the heterogeneity of banks and regions.Based on this,this paper firstly defines the two core concepts of green credit and credit risk,and expounds the theoretical basis of these two concepts.Then it analyzes the mechanism of green credit affecting the credit risk of commercial banks,and summarizes the development status of green credit of different types of banks in China from the perspectives of system construction,product,scale and growth rate and the proportion of green credit.In the empirical part,this paper puts forward a series of theoretical hypotheses,and takes the data of 24 commercial banks in China from 2010 to 2020 as samples.By designing individual fixed effect model,interaction term model and intermediary effect model,this paper studies the influence of green credit on the credit risk of commercial banks,as well as the moderating effect of bank micro characteristics and regional green development.The mediating effect of green reputation on the relationship between green credit and credit risk is further analyzed.The results show that :(1)there is a significant negative correlation between green credit and credit risk of commercial banks,and banks can effectively reduce their own credit risk level by carrying out green credit;(2)The micro-characteristics of banks will affect the relationship between green credit and bank credit risk,and banks with smaller asset scale and higher capital adequacy ratio can reduce credit risk better when carrying out green credit;(3)In areas with high level of green development,green credit is more conducive to reducing credit risks;(4)The development of green credit helps to build a good reputation of banks,but there is no evidence that green reputation plays an intermediary role between green credit and bank credit risk.Finally,based on the empirical conclusion,this paper argues that the government should focus on strengthening the incentive and constraint of green credit business,creating a good green credit policy environment,and cultivating new momentum of green development.Banks should actively change the concept of developing green business,improve operational efficiency and professional ability of green credit business service.