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Does green credit improve the core competence of commercial banks? Based on quasi-natural experiments in China
Open accessAbstract
The green credit policy is one of the key components of environmental policy. It has become an important issue to study how to implement the green credit policy and to evaluate its effect. From the perspective of environmental regulation, this paper attempts to construct a comprehensive score of commercial banks' competence by factor analysis, and constructs a quasi-natural experiment based on “Green Credit Guidelines” published in 2012 and uses Differences-in-Differences (DID) to test the impact of green credit implementation on commercial banks' core competence. The results show that green credit has a significant effect on the overall bank competence. Among them, the promotion effect of urban and rural commercial banks is higher than the industry average, and the promotion effect has weakened in the years after the policy was announced. Furthermore, from the dual perspectives of credit risk and reputation risk, the Difference-in-Difference-in-Difference (DDD) is used to test the impact mechanism of green credit on the core competence of banks. The results show that, compared with banks with lower credit risk and reputation risk, banks with higher credit risk and reputation risk experience greater enhancement in core competence by green credit.
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“Green credit policies can promote green growth by improving financial performance and core competitiveness of banks and encouraging commercial banks to lend to green enterprises”
From The impact of fintech innovation on green growth in China: Mediating effect of green finance (2022) · cites this paper as Luo et al., 2021
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Metadata
- Authors
- Luo, S., Yu, S., & Zhou, G.
- Affiliations
- Shanghai University of Finance and Economics (CN)
- Fudan University (CN)
- Corresponding author
- Zhou, Guangyou
- Venue
- Energy Economics
- Publisher
- Elsevier BV
- Published
- 2021-08
- Volume
- 100
- Pages
- 105335
- ISSN
- 0140-9883 (ISSN-L)
- OpenAlex
- W3164000193
- Cited by
- 194
- References
- 64
- Citations by year
- 2026: 17 · 2025: 49 · 2024: 49 · 2023: 41 · 2022: 33 · 2021: 5
- FWCI
- 26.53
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- Locations
- Energy Economics (publishedVersion, cc-by-nc-nd)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- National Natural Science Foundation of China (71573050, 71573170)
- Major Program of National Fund of Philosophy and Social Science of China (21ZDA094)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Sustainable Finance and Green Bonds
- Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
- Keywords
- green credit, commercial banks, Green Credit Guidelines, environmental regulation, credit risk, reputational risk, policy evaluation, China
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