A System Dynamics Simulation Study on the Efficiency of Commercial Banks from the Perspective of Green Credit

Abstract

With the deepened commitment to the green credit policy and increasingly intense competition among commercial banks, the impact of green credit on the efficiency of commercial banks has attracted great attention from the banking industry and governments. To study the efficiency of commercial banks from the perspective of green credit, this paper, with a case study on Bank of Shanghai, builds a system dynamics model to present the causal loop diagram and system flow diagram and seek the functional relations between variables. Then it goes on to simulate the evolution of the policy situation with system dynamics and attempts to find out the change path and evolution direction of green credit and variables regarding bank efficiency when a certain policy is adjusted, with a view to providing theoretical basis and data support for formulation of financial policies and selection of bank strategies.