Associate Professor Xiang Deng, a research fellow at the base, has a co-authored paper titled "A Study on the Impact of Banks' Carbon Risk on Loan Risk" published in the important academic journal Systems Engineering — Theory and Practice.

Systems Engineering — Theory and Practice is a comprehensive scientific and technological journal integrating systems science, management science, information science, etc., supervised by the China Association for Science and Technology and sponsored by the Chinese Association of Systems Engineering.

Abstract:

The strategy of green and low-carbon development brings more opportunities and challenges to the risk management of commercial banks, especially the carbon risk management. Based on the data of 240 Chinese commercial banks from 2012 to 2021, this paper constructed a measurement system for bank carbon risk, and empirically tested the effects of bank carbon risk on its loan risk, examined its mechanism from the perspective of loan scale and loan concentration in high-carbon industries, and put forward countermeasures accordingly. The empirical test results showed the following findings. First, bank carbon risk significantly increases bank loan risk. Second, the expansion of bank loan scale or loan concentration in manufacturing and construction industries will aggravate the accumulation of bank carbon risk, and then increase the bank loan risk. Third, in local commercial banks, substantial green credit practice can effectively mitigate the carbon risk of bank credit. Meanwhile, carbon emission policy has an impact on the bank carbon risk. When the low-carbon pilot city policy and the carbon trading pilot policy are superimposed, the impact of carbon risk of local commercial banks on the loan risk can be effectively mitigated. This paper provides policy reference for carbon risk management of banks under the new situation.

Keywords：Bank carbon risk；Loan risk；Loan size；Loan concentration；Carbon emission policy

Link：银行碳风险对贷款风险的影响研究

Teacher profile

Xiang Deng is an Associate Professor and Master's Supervisor at the School of Finance, Zhongnan University of Economics and Law, working in the Banking Management Teaching and Research Section, Department of Finance. Her research interests cover green finance, banking management, financial risk, and corporate finance. She teaches courses such as Introduction to Green Finance, Commercial Bank Operation and Management, Financial Services Marketing, and Sustainable and Green Finance. She has published many papers in core journals, presided over multiple projects including those funded by the National Social Science Fund, and won several academic awards such as the First Prize at the Academic Annual Conference of the Hunan Economics Society. She also serves as a member of the Green (Sci-Tech Innovation) Finance Professional Committee of Hubei Financial Society.