Green credit and bank’s risk-taking: evidence from China

IF 1.8 Q2 BUSINESS, FINANCE

International Journal of Managerial Finance Pub Date : 2024-07-05 DOI:10.1108/ijmf-03-2024-0144

Jianbo Song, Wencheng Cao, Yuan George Shan

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Abstract

PurposeThis study uses data from the Chinese banking sector to explore the relationship between green credit and risk-taking in commercial banks. It also examines whether the level of regional green development acts as a moderator regarding this relationship.Design/methodology/approachUsing a dataset composed of annual observations from 57 Chinese commercial banks between 2008 and 2021, this study employs both piecewise and curvilinear models.FindingsOur results indicate that when the scale of green credit is low (<0.164), it increases the risk-taking of commercial banks. Conversely, when the scale of green credit is high (>0.164), it reduces the risk-taking of commercial banks. Moreover, this nonlinear relationship impact exhibits bank heterogeneity. Furthermore, the results show that the level of regional green development and local government policy support negatively moderate the relationship between green credit and commercial bank risk-taking. Furthermore, we find that green credit can directly enhance the net interest margin of commercial banks.Originality/valueThis study is the first to provide evidence of a nonlinear relationship between green credit and risk-taking in commercial banks, and it identifies the significant roles of regional green development level and local government policy support in the Chinese context.

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绿色信贷与银行的风险承担：来自中国的证据

目的本研究利用中国银行业的数据，探讨绿色信贷与商业银行风险承担之间的关系，并研究地区绿色发展水平是否对这一关系起到调节作用。结果我们的研究结果表明，当绿色信贷规模较低（0.164）时，会降低商业银行的风险承担。此外，这种非线性关系的影响表现出银行的异质性。此外，研究结果表明，地区绿色发展水平和地方政府政策支持对绿色信贷与商业银行风险承担之间的关系具有负向调节作用。原创性/价值本研究首次提供了商业银行绿色信贷与风险承担之间存在非线性关系的证据，并明确了地区绿色发展水平和地方政府政策支持在中国背景下的重要作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Managerial Finance BUSINESS, FINANCE-

CiteScore

4.10

自引率

0.00%

发文量

期刊介绍： Treasury and Financial Risk Management ■Redefining, measuring and identifying new methods to manage risk for financing decisions ■The role, costs and benefits of insurance and hedging financing decisions ■The role of rating agencies in managerial decisions Investment and Financing Decision Making ■The uses and applications of forecasting to examine financing decisions measurement and comparisons of various financing options ■The public versus private financing decision ■The decision of where to be publicly traded - including comparisons of market structures and exchanges ■Short term versus long term portfolio management - choice of securities (debt vs equity, convertible vs non-convertible)