AN EXAMINATION OF CHINESE BANKS ABOUT GREEN LOANS, IMPROVED RISK MANAGEMENT, AND PRACTICAL BUSINESS OPPORTUNITIES.

Abstract

Through green loans, enhanced risk mitigation, and the search of actual economic prospects, this paper analyses the function of Chinese banks in fostering sustainability growth. With the introduction of China’s Sustainable Financial Strategy in 2007 and its subsequent strengthening in 2012 by the Green Credit Guidelines, green financing has emerged as a powerful instrument for balancing economic success with social and environmental accountability. Formal questionnaires and secondary sources were used to gather data for this quantitative study, which was then analysed with the use of SPSS version 25 and Excel. With the use of simple random selection, 616 surveys were found to have valid replies, guaranteeing equality of representation. Analyses of variance (ANOVA), descriptive statistics, component analysis, odds ratios, and assessments of relationships were used to validate constructs and detect group differences. The findings showed that green loans have a major impact on how Chinese banks function, helping them to better regulate risk and spot lucrative possibilities. In addition to preserving the environment, the research shows that green banking policies boost organisational resiliency and efficiency in the economy. Chinese banks may minimise biological hazards, appeal to clientele who are concerned about sustainability, and take advantage of legislative advantages by incorporating ESG concepts into their lending choices. This study adds to the increasing amount of data showing that responsible financing is more than just a formality; it really promotes lasting improvements in both the economy and the environment.