Green Credit Effects of Local Debt Management System Reform:Evidence Based on Regression Discontinuity Design

Preventing and resolving local debt risks is still a key issue at nowadays. In 2015, China carried out the reform of the local debt management system which has caused the credit allocation of commercial banks to be adjusted. In recent years, the scale of green credit has increased rapidly during the development of the green economy by the dual carbon strategy of China. Based on the data of listed commercial banks from 2008 to 2021, this paper establishes regression discontinuity models to explore the impact of local debt management system reform on green credit. It is found that the reformation promotes the development of green credit of commercial banks by adjusting the credit allocation and regulating the credit risk of commercial banks.