IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v103y2025ics1059056025006446.html

Green credit, bank competitiveness and bank risk-taking

Author

Listed:
  • Wu, Meixuan

Abstract

With the gradual improvement of people's environmental awareness, the government and various social groups have begun to realize the importance of green credit. Green credit is an important tool of green finance and a bridge to introduce commercial banks into environmental control, while enhancing core competitiveness is the intrinsic motivation for commercial banks to carry out green credit business. The article takes 22 commercial banks as research samples, selects data from 2009 to 2023, constructs commercial bank competitiveness scores, explores the relationship between green credit and commercial bank competitiveness, and applies the mediation effect model to test the role of risk-taking in it. It is found that green credit can significantly enhance the core competitiveness of commercial banks, and the risk-taking indicator produces a significant mediating effect. Therefore, the development of green credit has become a powerful weapon for commercial banks to enhance their competitiveness.

Suggested Citation

  • Wu, Meixuan, 2025. "Green credit, bank competitiveness and bank risk-taking," International Review of Economics & Finance, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025006446
    DOI: 10.1016/j.iref.2025.104481
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056025006446
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2025.104481?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Scholtens, Bert & Dam, Lammertjan, 2007. "Banking on the Equator. Are Banks that Adopted the Equator Principles Different from Non-Adopters?," World Development, Elsevier, vol. 35(8), pages 1307-1328, August.
    2. Mathuva, David Mutua & Kiweu, Josephat Mboya, 2016. "Cooperative social and environmental disclosure and financial performance of savings and credit cooperatives in Kenya," Advances in accounting, Elsevier, vol. 35(C), pages 197-206.
    3. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiang, Hai & Chen, Shuangyi & Chen, Peng, 2026. "Do online judicial auctions matter for bank risk-taking? Evidence of Chinese commercial banks," Research in International Business and Finance, Elsevier, vol. 83(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Piotr M. Bolibok, 2024. "Does Firm Size Matter for ESG Risk? Cross-Sectional Evidence from the Banking Industry," Sustainability, MDPI, vol. 16(2), pages 1-26, January.
    2. Andrew Osei Agyemang & Kong Yusheng & Angelina Kissiwaa Twum & Emmanuel Caesar Ayamba & Maxwell Kongkuah & Mohammed Musah, 2021. "Trend and relationship between environmental accounting disclosure and environmental performance for mining companies listed in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 12192-12216, August.
    3. Lai, Xiaobing & Zhang, Fan, 2022. "Can ESG certification help company get out of over-indebtedness? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 76(C).
    4. Mohammad Dulal Miah & Syed Mahbubur Rahman & Mahreen Mamoon, 2021. "Green banking: the case of commercial banking sector in Oman," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 2681-2697, February.
    5. Feng Wang & Siyue Yang & Ann Reisner & Na Liu, 2019. "Does Green Credit Policy Work in China? The Correlation between Green Credit and Corporate Environmental Information Disclosure Quality," Sustainability, MDPI, vol. 11(3), pages 1-15, January.
    6. Nurlan Orazalin & Mady Baydauletov, 2020. "Corporate social responsibility strategy and corporate environmental and social performance: The moderating role of board gender diversity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1664-1676, July.
    7. Haozhe Song & Gunnar Rimmel, 2025. "Debtholders' reaction to sustainability reporting regulations: International evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 34(1), pages 88-115, January.
    8. Oehler, Andreas & Neuss, Charlotte, 2025. "ESG disclosure vs. ESG ratings: Consistent information value?," International Review of Financial Analysis, Elsevier, vol. 107(C).
    9. Omaima A.G. Hassan & Peter Romilly, 2018. "Relations between corporate economic performance, environmental disclosure and greenhouse gas emissions: New insights," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 893-909, November.
    10. Erli Dan & Jianfei Shen, 2022. "Establishment of Corporate Energy Management Systems and Voluntary Carbon Information Disclosure in Chinese Listed Companies: The Moderating Role of Corporate Leaders’ Low-Carbon Awareness," Sustainability, MDPI, vol. 14(5), pages 1-28, February.
    11. Claudia Arena & Saverio Bozzolan & Claudia Imperatore, 2024. "Enhancing environmental reporting: A study on the role of narrative disclosure, firm‐ and country‐level incentives," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3414-3428, July.
    12. Geert Braam & Florian Habermann & Sam Drissen, 2025. "CSR Decoupling and Assurance of CSR Reports: Do Combinations of Level, Scope, and Assurance Provider Matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(6), pages 8065-8081, November.
    13. Rami Salem & Musa Ghazwani & Waleed Alshaer, 2025. "ESG Performance–Stock Price Volatility Nexus: The Moderating Effect of Board Cultural Diversity in G20 Markets," Business Strategy and the Environment, Wiley Blackwell, vol. 34(7), pages 8172-8193, November.
    14. Zhang, Cui, 2017. "Political connections and corporate environmental responsibility: Adopting or escaping?," Energy Economics, Elsevier, vol. 68(C), pages 539-547.
    15. Lu Zhang & Yuan George Shan & Millicent Chang, 2021. "Can CSR Disclosure Protect Firm Reputation During Financial Restatements?," Journal of Business Ethics, Springer, vol. 173(1), pages 157-184, September.
    16. Ishmael Tingbani & Lyton Chithambo & Venancio Tauringana & Nikolaos Papanikolaou, 2020. "Board gender diversity, environmental committee and greenhouse gas voluntary disclosures," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2194-2210, September.
    17. Liangdong Lu & Mengyao Wang & Jia Xu, 2023. "How to Keep Investors’ Confidence after Being Labeled as Polluting Firms: The Role of External Political Ties and Internal Green Innovation Capabilities," Sustainability, MDPI, vol. 15(17), pages 1-19, September.
    18. Lee, Chien-Chiang & Xiao, Qian & Zhang, Xiaoming, 2025. "Green credit and systemic risk: From the perspectives of policy and scale," The North American Journal of Economics and Finance, Elsevier, vol. 77(C).
    19. Khalil Nimer & Muath Abdelqader & Cemil Kuzey & Ali Uyar, 2024. "Emission targeting and carbon emissions: The moderating effect of female directors," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3480-3504, May.
    20. Ramona Zharfpeykan, 2021. "Representative account or greenwashing? Voluntary sustainability reports in Australia's mining/metals and financial services industries," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2209-2223, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025006446. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.