Does Green Credit Promote the Operating Performance of Commercial Banks? — Evidence from 21 Commercial Banks in China

With the proposal of carbon neutrality and peak carbon emissions, under the strong support of the government, the theme of green credit has become a focus. Based on panel data of 21 commercial banks of different sizes from 2011 to 2023, this article employs the individual fixed effects model to empirically analyze the impact of green credit on the operating performance of commercial banks. The empirical results show that green credit business has a significant positive effect on the operating performance of commercial banks. State-owned banks, due to their abundant resources and policy support, exhibit a more significant positive effect in the field of green credit. Large-scale banks have more advantages compared to small-scale banks in the field of green credit. This paper suggests that commercial banks should increase the promotion of green credit, state-owned banks should play a leading role, and the abilities of small and medium-sized banks in green credit should be enhanced. At the same time, the government and regulatory authorities should improve the green credit policy system and promote innovation in green financial products and services to promote the sustainable development of commercial banks and the growth of the green financial market.