Green Credit and Bank Efficiency: U-Shaped Relationships in a Hybrid Network SBM

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A network slack-based measure (SBM) model is applied to estimate overall and stage-specific efficiencies, and the results are examined through fixed effects regressions with tests for nonlinearity and moderation. Results show that green credit exerts a positive effect on productivity efficiency, but the marginal gain is attenuated by stronger financing capacity. By contrast, lending, investment, and the resulting profitability efficiency exhibit U-shaped relationships with green credit; higher capital adequacy (CAR) and liquidity (LR) flatten these U-shapes.

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