A Study On Impacts Of Green Credit From Perspective Of Bank Heterogeneity On Business Performance Of Commercial Banks In China

Since the reform and opening up,China’s rough economic development model of exchanging environmental damage for economic growth has seriously threatened the lives,health and property of the Chinese people,and has received widespread attention from the government and people from all walks of life.From President Xi Jinping’s "Two Mountains Theory" in 2005,to the concept of green development proposed at the 18 th National Congress of CPC,to the construction of beautiful China proposed at the 19 th National Congress of CPC,and then to the "Double Carbon" goal in 2020,these fully prove that China attaches great importance to improving the environment and protecting the ecology.Therefore,green development has become an important direction for China’s economic development.As a new type of financing and credit business to regulate economic development and the ecological environment,green credit is an important financial innovation to promote the healthy development of green economy in China.Commercial banks,as important financial intermediaries in China,are the main strategic high ground for the development of green credit business.The impact of green credit on the business performance of commercial banks is related to whether green credit can be promoted in an orderly manner and developed healthily,and the micro differences among commercial banks make the impact of green credit on the business performance of different commercial banks different.To provide theoretical support for the following study,this thesis firstly explains the background and significance of the development of green credit,then compares the literature on green credit and bank business performance at home and abroad,and finally analyzes the current development status and problems of green credit in China.Meanwhile,this thesis conducts a qualitative study based on theories related to green credit,business performance,and bank heterogeneity,and finds that green credit has both positive and negative effects on commercial bank business performance,as well as heterogeneous effects on the business performance of different types of commercial banks,thus proving the hypothesis of this thesis.Secondly,this thesis uses Stata software to create a panel regression model that quantifies the heterogeneous effects of green credit on the business performance of listed commercial banks in general,as well as the business performance of large state-controlled commercial banks,national joint-stock commercial banks,and local commercial banks,from 2012 to 2020.The theoretical and empirical studies conclude that green credit has a negative impact on commercial bank business performance,and that the impact on different types of commercial banks is heterogeneous.Furthermore,the specific analysis reveals that green credit has different impacts on commercial bank business performance depending on asset quality and bank liquidity.Finally,based on the above research,this thesis proposes corresponding countermeasures from the perspective of banks’ internal and external environment.