Research on influencing factors and transmission mechanisms of green credit risk

Controlling green credit risk is conducive to increasing the confidence of financial institutions, improving the enthusiasm of enterprises for green innovation, and promoting the sustainable development of green credit and the high-quality development of green economy. This paper puts government intervention, green technology innovation, and regulatory action into the same theoretical framework and puts forward the green credit risk transmission mechanisms which involve the transmission relationship and transmission path on the basis of the influencing factors. Then, this research uses stationary time series data (from the “China Statistical Yearbook,” the “Statistical Yearbook” of various provinces, the annual reports of listed companies, etc.) to analyze the current situation of green credit risk in different regions. From the systematic perspective, this study verifies the transmission path of green credit risk and tests the rationality and effectiveness of the green credit risk transmission mechanisms. The research shows that the management of green credit risk requires the active actions of government departments, financial institutions, green enterprises, and regulatory departments.