Determinants of green finance of Chinese banks: a perspective on China’s dual carbon target

Abstract

Commercial banks play an increasingly important role in supporting green transformation. Building on the dual lenses of organisational capability and commitment, this thesis examines the determinants of green finance among listed Chinese banks. China is taken as the research setting, where green finance has become increasingly important under the dual-carbon objectives. Using a bank-level panel dataset covering fifty-nine Chinese listed banks over the period 2007–2024, the study employs fixed-effects model, dynamic fixed-effects model, and system GMM models.

The findings show that green finance in Chinese listed banks is shaped by both capability- and commitment-based organisational drivers. Fintech capability and CSR commitments are positively associated with banks’ green finance outcomes, while their effects are conditioned by the broader dual-carbon policy environment and by bank-level organisational resources. The analysis further shows that these relationships are not uniform across the banking sector, with bank type influencing how effectively internal capabilities and commitments are translated into green finance practice. Dynamic evidence indicates that green finance is highly persistent over time, suggesting that it reflects a cumulative strategic orientation rather than a short-term compliance response. These findings imply that banks should integrate digital capability-building with credible CSR commitment, while policymakers should design differentiated green finance frameworks that enhance implementation capacity, accountability, and effectiveness across different types of banks.

Date of Award	2026
Original language	English
Awarding Institution	Canterbury Christ Church University