The effect of green credit on the performance of commercial banks

Nadia Mansour

Article ID: 10116
Vol 9, Issue 2, 2025


Abstract


The banking sector is a pillar of the world’s economic fabric and is today facing a major revolution due to the demands of sustainable development objectives and the evolution of sustainable finance tools. This article analyses the impact of green credit on commercial banks’ performance based on data from 10 commercial banks in China between 2012 and 2022. The study found that in the short term, the implementation of green credit has a positive effect on the income level of commercial banks’ intermediate activities and a moderating effect on their return on total assets and non-performing loan ratio.


Keywords


green credit; commercial banks; performance; China; panel data, sustainable finance

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References


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DOI: https://doi.org/10.24294/jipd10116

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