The Research of Commercial Bank´s Green Credit in China Based on the Threshold Effect

Since the policy of the green credit was carried on in July of 2007, the commercial banks have been supporting the project of energy saving measures increasingly day by day. However, the size of the loan for highly energy-consuming companies is not cut enormously, but raised continuously. This paper is discussing the cause of the increasing loan for highly energy-consuming companies by the method of mathematical analysis from the perspective of risk expectation. The main reason for this phenomenon is the limitation of wealth threshold and risk threshold, which are the principal factors to the judgment on the investment projects success ratio of commercial bank. In the long and dynamic process, the success ratio determined by commercial bank is based on the investment experience in the previous period. In sum, the suggestions and measures are proposed to promote the standardization development of green credit.