The Impact of Green Finance on the Profitability of Commercial Banks

Authors

  • Fangqun Zhang
  • Shiming Zhang

DOI:

https://doi.org/10.54097/9geb4k46

Keywords:

Green finance, Commercial banks, Profitability

Abstract

As global environmental problems are becoming more and more prominent, green finance, as an important means for commercial banks to cope with climate change and environmental pollution, has received widespread attention from the society. As a financial enterprise, the impact of green finance on the profitability of commercial banks is an important issue that needs to be discussed. In this paper, the impact of green finance on the profitability of commercial banks is analyzed theoretically, and the data of 16 commercial banks are selected as samples for empirical analysis, and the results show that green credit business has a negative impact on the profitability level of commercial banks. The results show that green credit business has a negative impact on the profitability of commercial banks. Subsequently, the paper puts forward relevant recommendations for commercial banks to respond to the empirical results. Finally, this paper also points out some shortcomings, including the limited data sample. Future research can further expand the sample scope, explore in depth the profitability of commercial banks' green finance business, and formulate more specific policy measures to promote the sustainable development of green finance.

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References

Zhang Cheng. Case study of green financial development of Bank of Jiangsu [D]. Xiangtan University, 2020.

Wang Rui. The Heterogeneous Impact of Green Credit on the Profitability of Commercial Banks in China [D]. Shanghai University of Finance and Economics, 2020.

Sun Hongmei, Yao Shuqi. Operational Risk and Financial Performance of Commercial Banks - A Perspective Based on the Impact of Green Business [J]. Jin Finance Forum, 2021, 26(02): 37-46.

Xu Fangyuan, Chen Jie. Research on the development of green finance business of commercial banks under the goal of "double carbon" [J]. China Market, 2023, (35):34-37.

Wang Wenlong, Zheng Zehua. Green industry fund helps green low-carbon transformation [J]. Macroeconomic Management, 2024, (01):62-69.

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Published

11-07-2024

Issue

Section

Articles