In 2016, "Guidance on the Construction of a Green Financial System" was issued to mark the establishment of a systematic green financial policy framework.Since 2011, China's green credit has grown steadily. In 2020, China's green credit reached 11.95 trillion yuan, up 14.47% year-on-year from 2019.With the implementation of China's sustainable development policy, enterprises' awareness of environmental protection has been gradually raised.The green transformation of commercial banks is the general trend.However, due to the late start of green credit in China, there are many uncertainties in developing green credit.The imperfect policies, lack of specialized personnel and pressure from local governments make commercial banks generally less motivated to green credit.
Firstly, this paper expounds the development status of green credit and summarizes the research results of green credit at home and abroad.Based on the data of China's green credit development, a panel regression model is established to quantitatively analyze the influence of green credit on the profitability of commercial banks.From the model analysis results, green credit can not promote the profitability of commercial banks, and has a very low negative impact.Combining with the above research conclusions, this paper puts forward the countermeasures to improve the profitability of commercial banks.Commercial banks should further optimize their lending structures, further collect environmental data and strengthen the application of big data to achieve sustainable development goals.