The Impact Of Green Credit On The Performance Of Commercial Bank In China

In recent years,the domestic and international environment has been complex,especially in the context of the recent recovery of the epidemic.China is facing more opportunities and challenges.Nowadays,China has entered a new stage of development,and high-quality economic development has become a necessary trend.In order to achieve a win-win situation between environmental protection and high-quality economic development,the Chinese government actively supports domestic commercial banks in developing green credit products and continuously strengthens the importance of green credit policies.In 2020,China put forward the development strategy of carbon peaking and carbon neutrality for the first time.With the rapid transformation and upgrading of China’s economic structure,green economy has become an inevitable trend of high-quality development.China’s commercial banks are currently in a fiercely competitive environment.In order to cope with external competition and enhance their international competitiveness,it is necessary to continuously improve the operational performance of commercial banks.Therefore,in-depth research on the impact of green credit on the operational performance of commercial banks is not only beneficial for the continuous development of green credit in China,but also for the further improvement of the overall operational performance level of commercial banks in China.This article analyzes the impact of green credit on the operational performance of commercial banks from three aspects: theoretical,current,and empirical.In the main body,firstly,a theoretical analysis is conducted.After a specific explanation of green credit and commercial bank performance,the impact mechanism of green credit on commercial bank performance is analyzed from four aspects: commercial bank safety,profitability,risk control ability,and growth ability.The impact of green credit on commercial bank performance is studied from a theoretical perspective;Secondly,an analysis of the current situation was conducted.Firstly,the current situation of the development of green credit business in commercial banks in China was introduced,and the main problems in the process of developing green credit in commercial banks were proposed accordingly;Once again,this article selects data from 31 listed commercial banks in China from 2014 to 2021 as the research object for empirical analysis.Firstly,nine operational performance indicators of commercial banks are selected,and the comprehensive performance indicators of commercial banks are calculated using factor analysis method.Then,a fixed effects model is used for empirical analysis,and commercial banks are divided into state-owned commercial banks Heterogeneity analysis was conducted on three types of joint-stock commercial banks and urban commercial banks,and two conclusions were drawn: firstly,green credit has a positive impact on the operational performance of commercial banks in China;Secondly,compared to large state-owned banks and joint-stock banks,urban commercial banks’ green credit has a more significant impact on their operational performance.Finally,this article proposes the conclusion of the entire article based on the above theoretical and empirical analysis,and provides suggestions for commercial banks to develop green credit.