Dynamic monitoring of green credit risk using a hybrid gray correlation degree-TOPSIS method.

Abstract

Under the background of the new development pattern, the green credit market has ushered in a huge space for development. The monitoring and control of green credit risk is conducive to solving the negative impact of green credit risk and promoting the healthy development and smooth operation of the green credit market. This study first takes different provinces in China as samples; takes the data of government departments, financial institutions, enterprises, and other stakeholders as the monitoring content; and then uses the hybrid gray correlation degree-TOPSIS method to analyze. Next, this paper compares the green credit risk monitoring values of different regions at the same time and the same regions at different times. And it compares the green credit risk monitoring values of green finance pilot cities before and after the pilot. The research results show that there are obvious differences in eastern, central, and western regions in different time periods, and the green credit risk is also different in green finance pilot cities before and after the pilot. Stakeholders such as government departments, financial institutions, and enterprises need to take active measures to improve the efficiency of green credit risk management and achieve the sustainability of green credit development.