The Expansion of Central Bank Collateral and Green Innovation of Enterprises

From the Perspective of Green Bonds

Abstract

This article takes the policy event of green bonds being included in the MLF (Medium Term Lending Facility) qualified collateral framework in June 2018 as a quasi natural experiment, and analyzes the impact of the expansion of the collateral framework of the new monetary policy on the credit spread of green bonds and the green innovation output of enterprises issuing green bonds based on a two period and multi period double difference model. The research results indicate that, firstly, the expansion of collateral by the central bank will significantly reduce the credit spread of green bonds and lower the financing costs of enterprises. Secondly, the expansion of collateral by the central bank will promote the improvement of green technology innovation capabilities of green enterprises, and alleviate their financing problems by issuing green bonds and green bonds themselves.