| Green credit is a hot topic and it has received much attention after China put forward the goals of "double reduction","carbon neutrality" and "carbon peaking",etc.Therefore,it is highly relevant to conduct research on green credit.Therefore,it is of great practical significance to conduct research on green credit.In this paper,we investigate the impact mechanism and change process of the development of green credit business on the operating capacity of commercial banks through a combination of qualitative and quantitative approaches based on a dynamic perspective.Firstly,the main research methods and conclusions on "green credit affects the competitiveness and operating capacity of commercial banks" are compiled.In the next section,the theoretical analysis,by compiling Porter’s hypothesis,risk amplification effect,reputation effect,and key processes of green credit business,the favorable and unfavorable effects are sorted out,and the specific impact mechanism of green credit on the operating capacity of commercial banks is derived,based on which the research hypothesis of this paper is proposed.In the empirical study,the data of 20 commercial banks in China from 2011 to2021 are selected to construct the evaluation indexes of commercial banks’ operating capacity through principal component analysis,and then the model,which only contains the primary term of the explanatory variables,is modified to include both primary and secondary terms and regression analysis is conducted.The results show that there is indeed an upward U-shaped relationship between the scale of banks’ green credit business and their operating capacity.To further verify the parabolic relationship,a "U-shaped" test is also included in the paper.Next,a heterogeneity analysis is conducted by dividing the sample according to whether the NPL ratio is higher than the mean.To address the issue,robustness tests are also included.Finally,the following conclusions are drawn: most commercial banks start green credit business in order to meet the regulatory requirements;green credit business has a negative impact on commercial banks’ operating capacity when the issuance volume is low,but gradually has a beneficial impact as the issuance volume increases;compared with large banks with low NPL ratios,small commercial banks with high NPL ratios start green credit Compared with large banks with low NPLs,small commercial banks with high NPL ratios are more likely to improve their operations. |
