The Impact of Green Finance on the Profitability of Commercial Banks

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.