This study investigates the risk control mechanisms in green credit operations by employing a comprehensive risk control model based on both endogenous and exogenous factors. Using Eviews software for empirical analysis

the study explores the impact of various internal and external variables on green credit risk. Key endogenous factors such as borrower creditworthiness and the environmental impact of green projects are examined

alongside exogenous factors including market conditions and regulatory changes. The research finds that borrower creditworthiness

assessed through traditional financial metrics

plays a significant role in determining the risk level of green credit. However

the environmental performance of projects

including their compliance with environmental standards and their potential for sustainability

is equally crucial. In addition

market conditions—such as fluctuations in demand for green products—and shifts in regulatory policies

including changes in government incentives or environmental regulations

are identified as critical external factors that influence the stability of green credit portfolios. The results indicate that while traditional financial risk management practices remain important

the unique characteristics of green credit require a more integrated approach that includes environmental and policy-related considerations. The study further highlights the need for banks to develop more sophisticated risk assessment frameworks

incorporating both financial and non-financial indicators

to better manage the risks associated with green credit. Based on these findings

the study proposes several practical recommendations for banks and financial institutions

such as improving the evaluation and screening processes for borrowers

enhancing environmental impact assessments for green projects

and continuously monitoring external factors like market dynamics and regulatory developments. This research contributes to the growing body of literature on green finance by providing a detailed

data-driven approach to risk control in green credit operations. It offers valuable insights for financial institutions seeking to mitigate risks in their green credit portfolios while ensuring the sustainability and financial viability of the projects they finance. By adopting the proposed strategies

banks can strengthen their green credit risk management practices and support the transition to a more sustainable economy.