Since 2007, the state has introduced a number of green finance-related policies, indicating that China's industry has gradually moved towards low-carbonisation and sustainable development. All commercial banks have actively responded to the green policies issued by the state, gradually increasing the proportion of green credit business in their business, resulting in the rapid development of green credit business in China. In such a social background, this paper will combine theoretical and empirical analyses to study the impact of banks' development of green credit business on their own profitability. First of all, the paper makes a brief introduction to the basic concept of green credit and related theories; next, the current development of green credit business in China and the relevant policies issued by the government are briefly described, and based on this, the current problems in the development of green credit are analysed; again, the sample data of Industrial and Commercial Bank of China for the period of 2008-2022 is selected, and a linear regression analysis to draw relevant conclusions.

Yulian Wei, Wei Lin. Analysis of the Impact of Green Credit on the Profitability of Commercial Banks—The Case of ICBC. Academic Journal of Business & Management (2023) Vol. 5, Issue 21: 80-89. https://doi.org/10.25236/AJBM.2023.052112.

[1] Mark, A. (1996) White Environmental Finance: Value and Risk in an Age of Ecology[J].Ethical Corporation Magazine, 20,02, 11: 44-48.

[2] Labatt, S and White, RR. (2003) Environmental finance: a guide to environmental risk assessment and financial products[M]. John Wiley & Sons, 2003.

[3] Xinyin, L. (2006) Rumination on the necessity and ways of innovation of green financial instruments[J]. Journal of Liaoning Institute of Socialism, (04):43-44.

[4] Yuwen, D. (2007) Building “green credit” for enterprises to save energy and reduce emissions[N]. Shanghai Securities News, 2007-7-20(07)

[5] Li, D. and Xin, Z. (2012) Green finance, social responsibility and behavioural choices of state-owned commercial banks[J]. Jilin University Journal Social Sciences Edition,52(05):82-89+160

[6] Huan, Z. and Cong, L. (2013) Research on comprehensive evaluation of commercial bank performance based on improved TOPSIS method[J]. Industrial & Science Tribune, 2013(10).

[7] Xiaoning, W. and Guangyin, Z. (2017) Does the implementation of green credit by commercial banks have an impact on profitability? -- An analysis based on panel data of 12 commercial banks [J]. Journal of Finance and Economics, 2017(06):41-46. DOI: 10.19622/j.cnki.cn36-1005/f.2017.06.008.

[8] Jinqiang, Y. and Xiaoyong, Y. (2019) Promoting the construction of green technology innovation system with green finance[J]. Fujian Tribune(The Humanities & Social Sciences Monthly),2018(03):41-47.

[9] Changjiang, Z. and Yue, Z. (2019) Can green credit improve the performance of commercial banks? [J]. Journal of Financial Development Research, 2019(7): 70-76. 

[10] Yawei, S. (2019) Analysis of the impact mechanism of green credit on the financial performance of commercial banks[J]. New Finance, 2019(09):42-47

[11] Lin, Z. and Yonghui, L. (2020) How does green credit affect the financial performance of commercial banks? -- A perspective based on the decomposition of banks’ income structure[J]. South China Finance, 2020(02):45-5

[12] Yun, S. (2022) Analysis of the current situation and suggestions for the development of green credit in commercial banks under the “dual carbon” goal [J]. Foreign Economic Relations & Trade, 2022(12):86-90.

[13] Wei, T. (2022) The impact of green finance on the profitability of commercial banks in the context of low carbon [D]. Shandong University of Finance and Economics, 2022.