Author(s)

Xinyue Duan

Corresponding Author

Xinyue Duan

ABSTRACT

Green finance, as an important starting point to promote the “double carbon” strategy, is of great significance in the future green development, and green credit, as the main component of green finance, plays an important role. Based on the panel data of 35 listed commercial banks in China from 2007 to 2021, this paper uses the random effect model to measure the impact of taxation on the green credit of commercial banks, and further analyzes the heterogeneity by using the scale level of commercial banks. The results show that the total tax burden rate of commercial banks is negatively related to the green credit rate, and tax has a negative impact on the green credit of commercial banks by reducing the provision rate of non-performing loans. In addition, compared with small and medium-sized banks, the negative impact of taxation on green credit of large banks is more significant.

KEYWORDS

Green credit, Taxation, Non-performing loan provision coverage ratio