Impact of Green Credit on the Performance of Commercial Banks: Evidence from 42 Chinese Listed Banks

Chen Jiaxu ()
Additional contact information
Chen Jiaxu: International Business, Beijing Foreign Studies University, Beijing, 100089, China

Economics - The Open-Access, Open-Assessment Journal, 2025, vol. 19, issue 1, 15

Abstract: With the rapid advancement of the “dual carbon” goals, the impact of green credit is receiving increasing attention. This study investigates the influence of green credit on the performance of commercial banks, using panel data from 42 Chinese commercial banks (2007–2022). The empirical results show that green credit significantly enhances the performance of commercial banks, with this effect being more pronounced in non-state-owned banks or under higher regulatory pressure. Furthermore, mechanism testing reveals that the debt-to-assets ratio (DAR) and cost-income ratio (CIR) play a positive moderating role in the impact of green credit on the commercial banks’ performance. This study enhances the understanding of the relationship between green credit and commercial banks’ efficiency by providing new insights into ownership structures, regulatory pressures and some financial indicators like DAR and CIR. Besides, this study provides empirical evidence for how commercial banks can utilize green credit to improve their performance and offers valuable policy references regarding green credit and the performance of commercial banks for policymakers, such as introducing supportive policies for green credit targeted at commercial banks and establishing a sound financial monitoring system.

Keywords: green credit; Chinese commercial banks; bank performance; debt-to-assets ratio; cost-income ratio (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/econ-2025-0131 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:econoa:v:19:y:2025:i:1:p:15:n:1002

DOI: 10.1515/econ-2025-0131

Access Statistics for this article

Economics - The Open-Access, Open-Assessment Journal is currently edited by Katharine Rockett

More articles in Economics - The Open-Access, Open-Assessment Journal from De Gruyter
Bibliographic data for series maintained by Peter Golla ().