Abstract

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.