Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

"Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles

Version 1 : Received: 11 April 2021 / Approved: 12 April 2021 / Online: 12 April 2021 (14:32:36 CEST)

How to cite: keyi, D.K. "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles. Preprints 2021, 2021040320. https://doi.org/10.20944/preprints202104.0320.v1 keyi, D.K. "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles. Preprints 2021, 2021040320. https://doi.org/10.20944/preprints202104.0320.v1

Abstract

The Equator Principle is the goal of promoting the harmonious development of my country's economy and society. It promotes the green transformation and upgrading of the industrial structure by strictly controlling the flow of commercial bank funds, so as to achieve the goal of environmental protection and the coordinated development of the national economy. This paper uses factor analysis to reduce the dimensions of 10 financial indicators and non-financial indicators that measure the operating performance and development potential of joint-stock commercial banks, and then compares the comprehensive operating performance, liquidity, and safety of Industrial Bank and comparable banks. And the level of profitability, analyze the difference in comprehensive operating performance of joint-stock commercial banks joining the Equator Principles compared with commercial banks that have not joined the Equator Principles. The results of the study found that joining the Equator Principles of joint-stock commercial banks can improve comprehensive operating performance in the short term. In the long run, the development trend of Industrial Bank will be similar to that of comparable banks in the same category. Joining the Equator Principles of Industrial Bank can improve its liquidity and profitability, but it will not in the long run. Conducive to the improvement of the asset quality of joint-stock commercial banks. In this regard, the government, enterprises and financial institutions should work together to help commercial banks achieve an effective balance between operating performance and social responsibility, so as to achieve the goals of "carbon peak" and "carbon neutral".

Keywords

Carbon neutral; Equator Principle; Industrial Bank; "Three Principles"; Factor Analysis; Carbon neutral

Subject

Computer Science and Mathematics, Algebra and Number Theory

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