Research on the Impact of Green Credit on the Financial Performance of Commercial Banks

Yin, Xingbang

doi:10.18686/fm.v6i1.3267

Cited by 7 publications

(6 citation statements)

References 2 publications

(3 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…(2) Parallel trend test. The use of the DID method requires the parallel trend test to be satisfied, i.e., the trend of total factor productivity changes in the control group and the experimental group should remain roughly the same in the absence of external shocks [ 23 ]. In order to test whether the total factor productivity of the treatment and control groups satisfies the parallel trend hypothesis, the following regression model was set up on the basis of model (1).…”

Section: Results and Analysismentioning

confidence: 99%

The Impact of the Green Finance Reform and Innovation Pilot Zone on the Green Innovation—Evidence from China

Zhang

2022

IJERPH

View full text Add to dashboard Cite

This article uses the “Green Finance Reform and Innovation Pilot Zone” promulgated in 2017 as an example to construct a quasi-natural experiment and uses the difference-in-difference method to test the impact of the implementation of the “Green Finance Reform and Innovation Pilot Zone” on the green innovation activities. It was found that the policy promotes the quantity and quality of corporate green innovation. The mechanism test showed that policy promotes the R&D investment and expands the credit scale. The study further found that green finance policies enhance the green innovation of enterprises as government environmental regulation is strengthened. Finally, green innovation by state-owned enterprises is more strongly promoted in the pilot green finance reform and innovation zones, and green innovation by enterprises in non-polluting sectors is more sensitive to the policy, with a heterogeneous pattern of policy effects in eastern and non-eastern China. Therefore, green finance policies should be promoted to achieve an effective combination of financial resource allocation and corporate green innovation to promote the construction of ecological civilization.

show abstract

Section: Results and Analysismentioning

confidence: 99%

The Impact of the Green Finance Reform and Innovation Pilot Zone on the Green Innovation—Evidence from China

Zhang

2022

IJERPH

View full text Add to dashboard Cite

show abstract

“…They believe that the return of green credit business is low because carrying out green credit will increase the operating cost of commercial banks, thus harming the development quality of commercial banks. This negative effect is more evident in small-and medium-sized businesses (Han et al, 2019;Wanting, X., 2020;Yin X., 2021). At the enterprise level, most of the literature focuses on the relationship between green credit policies and firms' investment and financing profiles (Liu et al, 2019;Huang and Lei, 2021;Li et al, 2022;Liu et al, 2022).…”

Section: Empirical Reviewmentioning

confidence: 99%

Can the green credit policy stimulate green innovation of heavily polluting enterprises in China?

Xiong

Masron

Gondo

2023

Front. Environ. Sci.

View full text Add to dashboard Cite

Introduction: The requirement for more funds has been a significant challenge for China’s heavily polluting enterprises (HPEs) to embark on green innovation.Methods: This study takes China’s 2012 Green Credit Guidelines (GCGs) as a quasi-natural experiment to examine their effect on the quality and quantity of green innovation in HPEs. Using the data of Chinese listed companies from 2007 to 2020 and the difference-in-differences (DID) model.Results: We found that the Green Credit Guidelines could significantly improve the number of enterprises’ green innovation but not their quality.Discussion: As part of the potential solutions, this study proposes 1) the implementation of specific green fiscal policies to complement the existing green credit policies by the government, 2) a more comprehensive range of green financing products by financial institutions, and 3) the active development of funding from non-bank sources, such as venture capital or commercial credit.

show abstract

“…The non-performing loan ratio (NPLR) is the ratio of non-performing loans to total loans and reflects the quality of a bank's loans. [10] The capital adequacy ratio (CCAR) is the total capital divided by risk-weighted assets, and reflects the bank's resilience to risk; the higher the CCAR, the more resilient the bank is. These two indicators reflect the bank's own asset quality and management capabilities; the better he management, the better the asset quality, and the bank's profitability will rise.…”

Section: Variable Selectionmentioning

confidence: 99%

Analysis of the Impact of Green Credit on the Profitability of Commercial Banks—The Case of ICBC

2023

AJBM

View full text Add to dashboard Cite

Since 2007, the state has introduced a number of green finance-related policies, indicating that China's industry has gradually moved towards low-carbonisation and sustainable development. All commercial banks have actively responded to the green policies issued by the state, gradually increasing the proportion of green credit business in their business, resulting in the rapid development of green credit business in China. In such a social background, this paper will combine theoretical and empirical analyses to study the impact of banks' development of green credit business on their own profitability. First of all, the paper makes a brief introduction to the basic concept of green credit and related theories; next, the current development of green credit business in China and the relevant policies issued by the government are briefly described, and based on this, the current problems in the development of green credit are analysed; again, the sample data of Industrial and Commercial Bank of China for the period of 2008-2022 is selected, and a linear regression analysis to draw relevant conclusions.

show abstract

Research on the Impact of Green Credit on the Financial Performance of Commercial Banks

Cited by 7 publications

References 2 publications

The Impact of the Green Finance Reform and Innovation Pilot Zone on the Green Innovation—Evidence from China

The Impact of the Green Finance Reform and Innovation Pilot Zone on the Green Innovation—Evidence from China

Can the green credit policy stimulate green innovation of heavily polluting enterprises in China?

Analysis of the Impact of Green Credit on the Profitability of Commercial Banks—The Case of ICBC

Contact Info

Product

Resources

About