UWSpace is currently experiencing technical difficulties resulting from its recent migration to a new version of its software. These technical issues are not affecting the submission and browse features of the site. UWaterloo community members may continue submitting items to UWSpace. We apologize for the inconvenience, and are actively working to resolve these technical issues.
 

The Impact of Green Lending on Credit Risk in China

Simple item page
dc.contributor.authorCui, Yujun
dc.contributor.authorGeobey, Sean
dc.contributor.authorWeber, Olaf
dc.contributor.authorLin, Haiying
dc.date.accessioned2018-06-14T20:16:17Z
dc.date.available2018-06-14T20:16:17Z
dc.date.issued2018-06-14
dc.description.abstractThis study explores China’s green credit policy from a credit risk perspective. Green finance has been growing rapidly in China since the government issued its Green Credit Policy. The objective of this study is to explore whether green loans are less risky than non-green loans. Based on a five-year dataset of 24 Chinese banks, we used panel regression techniques, including two-stage least square regression analysis and random-effect panel regression to examine whether a higher green credit ratio reduces a bank’s non-performing loan ratio (NPL ratio). The results suggest that allocating more green loans to the total loan portfolio does reduce a bank’s NPL ratio. We conclude that institutional pressure by the Chinese Green Credit Policy has a positive effect on both the environmental and the financial performance of banks. The study contributes to the literature on the correlation between green lending and credit risks, as well as to the literature on the impact of institutional pressure on environmental and financial risks.en
dc.description.sponsorshipSocial Sciences and Humanities Research Council [435-2016-0176]en
dc.identifier.urihttps://doi.org/10.3390/su10062008
dc.identifier.urihttp://hdl.handle.net/10012/13400
dc.language.isoenen
dc.publisherMDPIen
dc.rightsAttribution 4.0 International*
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/*
dc.subjectgreen financeen
dc.subjectgreen credit policyen
dc.subjectnon-performing loan ratioen
dc.subjectenvironmental risk managementen
dc.subjectChinese banking sectoren
dc.titleThe Impact of Green Lending on Credit Risk in Chinaen
dc.typeArticleen
dcterms.bibliographicCitationCui, Y., Geobey, S., Weber, O., & Lin, H. (2018). The Impact of Green Lending on Credit Risk in China. Sustainability, 10(6), 2008. doi: https://doi.org/10.3390/su10062008en
uws.contributor.affiliation1Faculty of Environmenten
uws.contributor.affiliation2School of Environment, Enterprise and Developmenten
uws.peerReviewStatusRevieweden
uws.scholarLevelFacultyen
uws.typeOfResourceTexten

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Cui Weber et al 2018.pdf
Size:
492.77 KB
Format:
Adobe Portable Document Format
Description:
Publisher's version
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
6.08 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

Waterloo Research