Can banking competitiveness stimulate the development of regional green finance?

IF 5.6 2区经济学 Q1 BUSINESS, FINANCE

International Review of Economics & Finance Pub Date : 2025-07-23 DOI:10.1016/j.iref.2025.104464

Weiming Xiang, Chen Ma

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Abstract

This study examines the impact of competition among commercial banks on the advancement of regional green finance, utilizing data from 276 Chinese cities (2007–2023) and the Herfindahl-Hirschman Index (HHI) as a metric for competition. Employing a two-way fixed effects model and stringent robustness tests, we ascertain that reduced banking concentration (more competition) substantially enhances the expansion of green finance. This effect functions through two primary mechanisms: competitive pressure augments banks' credit capacities (through enhanced green project evaluation and customized products) and draws in green firms (by lowering entry barriers). The impact is particularly pronounced in less financially developed areas (mid-western China, southeast of the Hu Huanyong Line), where competition mitigates structural finance deficiencies. These findings highlight the significance of competitive banking as a driver of green finance, providing practical guidance to governments and banks seeking to expedite sustainable economic changes.

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银行竞争力能否促进区域绿色金融的发展？

本研究利用276个中国城市（2007-2023年）的数据和赫芬达尔-赫希曼指数（HHI）作为竞争指标，考察了商业银行之间的竞争对区域绿色金融发展的影响。采用双向固定效应模型和严格的稳健性检验，我们确定降低银行集中度（更多的竞争）大大促进了绿色金融的扩张。这种效应通过两种主要机制发挥作用：竞争压力增强了银行的信贷能力（通过加强绿色项目评估和定制产品），并吸引了绿色企业（通过降低进入壁垒）。这种影响在金融不太发达的地区（中国中西部，胡焕庸线东南部）尤为明显，那里的竞争缓解了结构性融资不足。这些发现突出了竞争性银行作为绿色金融驱动力的重要性，为寻求加速可持续经济变革的政府和银行提供了实用指导。

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 Review of Economics & Finance Multiple-

CiteScore

7.30

自引率

2.20%

发文量

253

期刊介绍： The International Review of Economics & Finance (IREF) is a scholarly journal devoted to the publication of high quality theoretical and empirical articles in all areas of international economics, macroeconomics and financial economics. Contributions that facilitate the communications between the real and the financial sectors of the economy are of particular interest.