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Green credit and bank risk: Does corporate social responsibility matter?

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  • An, Xin
  • Ding, Yue
  • Wang, Yao

Abstract

This article examines the impact of green credit on bank risk and the moderating role of corporate social responsibility (CSR) on it, based on data from 35 listed banks in China from 2010 to 2021. The results show that the development of green credit significantly reduces banks' overall risk. Moreover, the impact of green credit on bank risk was heterogeneous, with a significant positive effect on large banks, state-owned banks and high-margin banks. CSR had a positive moderating effect between green credit and bank risk. This paper provides new insights into the relationship between green credit and bank risk.

Suggested Citation

  • An, Xin & Ding, Yue & Wang, Yao, 2023. "Green credit and bank risk: Does corporate social responsibility matter?," Finance Research Letters, Elsevier, vol. 58(PA).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323007213
    DOI: 10.1016/j.frl.2023.104349
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    References listed on IDEAS

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    Cited by:

    1. Li, Ran & Luo, Yang, 2024. "Green credit and regional industrial structure upgrading: Evidence from China," Finance Research Letters, Elsevier, vol. 65(C).
    2. Zhou, Zhiyi & Tong, Jing & Lu, Haoyang & Luo, Shouyi, 2024. "The impact of green finance and technology on the commercial banks’ profit and risk," Finance Research Letters, Elsevier, vol. 66(C).
    3. Liao, Kezhi & Ma, Chengcheng & Zhang, Jingxue & Wang, Zhihao, 2024. "Does big data infrastructure development facilitate bank fintech innovation? Evidence from China," Finance Research Letters, Elsevier, vol. 65(C).

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