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

In recent years,with the rapid growth of my country’s economy,our resources and environment are also deteriorating day by day,which has even seriously threatened our daily life.In order to maintain ecological sustainable development and promote the transformation of industries to green,my country has proposed a green credit policy,placing green credit at a national strategic level,focusing on the implementation of green credit policies,and accelerating the green transformation of the economy.Currently,green credit is developing comprehensively,and commercial banks are the main institutions for developing green credit policy.The impact of green credit on the activities of commercial banks is directly related to whether they actively implement the policy.Therefore,additional research is needed on the effect of green credit on the efficiency level of commercial banks.In addition,the rapid development of financial technology has led to the emergence of new technologies such as cloud computing,big data,artificial intelligence,blockchain,and the Internet of Things.At the same time,the application of these new technologies will also affect the relationship between green credit and bank performance.Therefore,in this paper,we will consider including the fintech index in the empirical study on the relationship between green credit and commercial bank performance and the study on the relationship between green credit and commercial bank performance under the fintech deterrent effect.The direction of the study in this paper is based on the dynamic effect of green credit on the efficiency level of commercial banks under the corrective effect of financial technology.First,this thesis presents the background and significance of the thesis,analyzes the research results on the relationship between green credit and commercial bank performance,identifies concepts related to green credit and fintech,and discusses related theories.Commercial Banks Implementing Green Credit.Secondly,this chapter analyzes the dynamic impact of green credit on commercial bank performance from six aspects:substitution effect,cost surge effect,risk spillover effect,crowding out effect,reputation intermediary effect,and transformation and upgrading effect.The upgrading effect has a positive impact on the performance level of commercial banks.The substitution effect plays a role in the early stage,and the reputation intermediary effect and the transformation and upgrading effect are mainly in the mature stage.The cost surge effect,risk spillover effect,and crowding effect affect the performance level of commercial banks.The effect of cost surge,risk spillover and crowding out is mainly in the transition period.Therefore,this paper proposes Hypothesis 1: Green credit and bank performance have an inverted U-shaped relationship.In addition,considering the regulatory impact of Fintech,we examine the regulatory impact of Fintech on the relationship between green credit and commercial bank performance from two perspectives: the impact of competition and the impact of technology diffusion.the positive impact of credit on the level of activity of commercial banks,the technological spillover effect also weakens the negative impact of green credit on the performance level of banks to a certain extent during the transition period.Therefore,this paper proposes Hypothesis 2: Fintech will weaken the “inverted U” relationship between green credit and commercial bank profitability.Next,the current situation and problems of green credit are sorted out.my country’s green credit has continued to grow steadily in terms of scale and growth rate.However,there are still lack of innovation in green credit products,lack of incentive mechanism for green credit,lack of professional talent development,and lack of information disclosure mechanism.and regulatory constraints.In terms of empirical data,this paper selected relevant data for 36 listed banks from 2010 to 2020 as a sample.After the F test and the Hausman test,based on the dynamic impact of green credit on bank performance under Fin Tech,a fixed effect model is used to study green credit.The relationship with the bank performance level and the relationship between them considering the adjustment effect of Fin Tech,the possible time lag problem is solved through the endogenous test,and the robustness test is used to prove the relationship between green credit and the performance level of commercial banks.relation.The research shows that:(1)There is an inverted U-shaped relationship between green credit and bank performance.In the early stage of green credit development,the proportion of green credit is low,and its substitution effect appears,and green credit is positively correlated with bank performance;in the transition period of green credit development,the proportion of green credit increases,cost surge effect,crowding effect,risk spillover effect Gradually,green credit is negatively correlated with bank performance.(2)Under the moderating variable of fintech,the inverted U-shape of green credit and commercial bank performance level will tend to be flat,that is,fintech will weaken the relationship between the two.When the fintech index is low,the competition effect is prominent,and the crowding out effect appears earlier,weakening the positive impact of the substitution effect of green credit;with the fintech index,the technology spillover effect will exceed the competition effect,and the green credit Cost surge effects and risk spillovers have been mitigated,resulting in a flattening of the decline in bank performance.Finally,we propose appropriate policy measures according to the current status of green credit and the results of empirical analysis.