Author(s)

Zhao Ranning

Corresponding Author

Zhao Ranning

ABSTRACT

With the gradual landing of the “two-carbon” goal, green development has become the main orientation of China's economic development. Green finance is an important driving force for the green transformation of China's economy, and green credit, as an innovative financial product issued by banks in response to national industrial policies and environmental economic policies, has played an important role in this process. Based on the relevant statistical data of green credit, starting from the current development of green credit, this paper uses the panel data of 36 domestic listed commercial banks from 2011 to 2020 to analyze the relationship between green credit and commercial banks' profitability. The results show that green credit has a negative impact on commercial banks' profitability in general, and it has passed the robustness test. In the heterogeneity test, it is found that green credit has a positive impact on the profitability of state-owned banks and a negative impact on joint-stock banks and city commercial banks. Based on this, this paper puts forward corresponding suggestions and countermeasures.

KEYWORDS

Commercial banks, Green credit, Profitability, Affect