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

Keyi Duan

doi:doi:10.11648/j.ijtam.20210704.11

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

Keyi Duan

Published in International Journal of Theoretical and Applied Mathematics (Volume 7, Issue 4)

Received: 6 July 2021 Accepted: 14 July 2021 Published: 23 July 2021

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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".

Published in	International Journal of Theoretical and Applied Mathematics (Volume 7, Issue 4)
DOI	10.11648/j.ijtam.20210704.11
Page(s)	57-67
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Carbon Neutral, Equator Principle, Industrial Bank, "Three Principles", Factor Analysis

References

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[3]	He Dan. The evolution of the Equator Principle, its influence and China’s response [J]. Theory Monthly, 2020, 459 (03): 72-80.
[4]	Hu Po, Qiang Xiaojie. Reflections on the environmental and social responsibilities of my country’s financial institutions based on the Equator Principles [J]. Journal of Jiangxi University of Finance and Economics, 2016, 000 (05): 33-42.
[5]	Chen Qi, Zhang Guangyu. Analysis and Enlightenment on the Development of Green Finance Business of Commercial Banks——Taking Industrial Bank as an Example [J]. Economic Research Reference, 2017, 000 (053): 107-111.
[6]	Du Chaoyun, Ma Yufei. Commercial Bank Social Responsibility, Reputation Spillover and Market Effect——Based on the Case Study of China’s First Equator Bank [J]. Investment Research, 2014, 33 (04): 74-86.
[7]	Xu Feng, Ma Jiawei. The impact of China's commercial banks' implementation of environmental risk management policies on their operating performance: Taking the Equator Principle as an example [J]. Macroeconomic Research, 2019, 250 (09): 16-28.
[8]	Hua Wencang, Du Chaoyun, Ma Fei. Analysis of the financial effects of the Equator Principles--Taking Industrial Bank as an example [J]. Friends of Accounting, 2015, 000 (012): 118-120.
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[15]	Sun Limei, Ji Ying. Comparative Study on Cost Efficiency of Commercial Banks in China —— Based on the Perspective of Ownership Structure Analysis [J]. Wuhan Finance 2013 (04): 69-71.

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APA Style

Keyi Duan. (2021). "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles. International Journal of Theoretical and Applied Mathematics, 7(4), 57-67. https://doi.org/10.11648/j.ijtam.20210704.11

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ACS Style

Keyi Duan. "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles. Int. J. Theor. Appl. Math. 2021, 7(4), 57-67. doi: 10.11648/j.ijtam.20210704.11

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AMA Style

Keyi Duan. "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles. Int J Theor Appl Math. 2021;7(4):57-67. doi: 10.11648/j.ijtam.20210704.11

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@article{10.11648/j.ijtam.20210704.11,
  author = {Keyi Duan},
  title = {"Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles},
  journal = {International Journal of Theoretical and Applied Mathematics},
  volume = {7},
  number = {4},
  pages = {57-67},
  doi = {10.11648/j.ijtam.20210704.11},
  url = {https://doi.org/10.11648/j.ijtam.20210704.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijtam.20210704.11},
  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".},
 year = {2021}
}

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TY  - JOUR
T1  - "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles
AU  - Keyi Duan
Y1  - 2021/07/23
PY  - 2021
N1  - https://doi.org/10.11648/j.ijtam.20210704.11
DO  - 10.11648/j.ijtam.20210704.11
T2  - International Journal of Theoretical and Applied Mathematics
JF  - International Journal of Theoretical and Applied Mathematics
JO  - International Journal of Theoretical and Applied Mathematics
SP  - 57
EP  - 67
PB  - Science Publishing Group
SN  - 2575-5080
UR  - https://doi.org/10.11648/j.ijtam.20210704.11
AB  - 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".
VL  - 7
IS  - 4
ER  -

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Author Information

Keyi Duan

School of Economic and Management, Gannan Normal University, Ganzhou, China

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Plain Text BibTeX RIS

APA Style

Keyi Duan. (2021). "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles. International Journal of Theoretical and Applied Mathematics, 7(4), 57-67. https://doi.org/10.11648/j.ijtam.20210704.11

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ACS Style

Keyi Duan. "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles. Int. J. Theor. Appl. Math. 2021, 7(4), 57-67. doi: 10.11648/j.ijtam.20210704.11

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AMA Style

Keyi Duan. "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles. Int J Theor Appl Math. 2021;7(4):57-67. doi: 10.11648/j.ijtam.20210704.11

Copy | Download

@article{10.11648/j.ijtam.20210704.11,
  author = {Keyi Duan},
  title = {"Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles},
  journal = {International Journal of Theoretical and Applied Mathematics},
  volume = {7},
  number = {4},
  pages = {57-67},
  doi = {10.11648/j.ijtam.20210704.11},
  url = {https://doi.org/10.11648/j.ijtam.20210704.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijtam.20210704.11},
  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".},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - "Green into Gold": The Sustainable Development of Commercial Banks from the Perspective of the Equator Principles
AU  - Keyi Duan
Y1  - 2021/07/23
PY  - 2021
N1  - https://doi.org/10.11648/j.ijtam.20210704.11
DO  - 10.11648/j.ijtam.20210704.11
T2  - International Journal of Theoretical and Applied Mathematics
JF  - International Journal of Theoretical and Applied Mathematics
JO  - International Journal of Theoretical and Applied Mathematics
SP  - 57
EP  - 67
PB  - Science Publishing Group
SN  - 2575-5080
UR  - https://doi.org/10.11648/j.ijtam.20210704.11
AB  - 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".
VL  - 7
IS  - 4
ER  -

Copy | Download