Research On Coherent Development Between Financial Institutions' Credit Increase And Economic Growth In Jilin Province

With the reform pace of bank commercialization, risk consciousness and control mechanism in bank is gradually strengthening, especially after 11th December of 2006, with the end of WTO transition period and the opening of the commerce, the bank credit careful degree further strengthens. But the fast economy develops and promotes the old industrial base to need the fund the massive investments. This causes the contradiction between fund supply and demand to be more prominent. The government questions the speed of the increase of the loan rate in the bank of Jilin province. But the questions in Jilin province inside and other provinces are not decreased, the trend is strengthening. This article tries to solve the problems in Jilin, analyses and studies the relationship between the increase of loan and economic development, expounds the influence of economy growth and the bank credit growth and the influence which brings for the bank own-management after bank reform in Jilin Province, thus provides the realistic reference for Jilin Province's economical financial health development and the decision-making of leadership. This article is divided into six parts.The first part is a theoretical summary about the documentation of the development of commerce and economy. This part elaborates the viewpoint of partial domestic and foreign experts about the economical and the financial development theory, and also quotes many domestic and foreign experts' research results from the real diagnosis stratification plane, aiming to clearing the significance and the goal of this article.The second part is the analysis and the appraisal about the situation of financial organ credit growth in Jilin Province This part analyzes the situation of financial organ credit fund growth from the total quantity and the structure to the benefit, two aspects near for six year in Jilin Province. Analyzes the related characteristic from the loan total quantity, various years distribution, the loan structure, the credit fund increase across good border distribution and so on several aspects. We draw the following conclusion from the credit benefit analysis: the credit delivery is becoming more rationalization; the loan delivery profession structure optimizes, the financial organ pays more attention to the professional credit policy; through providing loan to the high quality customers moderately, the credit structure gradually obtains the optimization, the risk control strengthens year by year.The third part analyzes the relevance of the credit increasing with the economic growth of financial institution in Jilin Province. The economic growth needs financial support, meanwhile, the credit funds disposed has function of guiding on the economic restructuring, and the credit put into effectively has facilitation to the sustained economic development. This part indicates that the pace of credit throwing by Jilin Province financial institution is slightly slow with the sum of the economic growth and price rise in the past six years, through a series of data, but it has guaranteed the need of the economic growth generally. Overall, because the whole economic scale in Jilin Province takes smaller in the whole country, and the influence in total scale base figure of loan is relatively little, it is comparatively reasonable that the growth of credit is higher than national average growth for accelerate old industrial base revitalize.The forth part analyzes the questions that restrain the credit of financial institution of Jilin Province developed from increasing with economic growth in harmony. This paper thinks that the primary problem restrain credit throwing with economic growth in harmony is that the whole social economic environments of Jilin Province are worse and too many question left over from history. The whole social credit environment of Jilin Province is relatively poor, and it is the important problem that restrains the credit throwing of financial institution with economic growth in harmony. This part points out three pairs of contradictions present in economic and financial development at the same time: the conspicuous contradiction between reality financial demand of Jilin Province private economy and financial institution credit aid, the conspicuous contradiction between the "run on a bank effect" influence of direct financing and indirect financing, the conspicuous contradiction between the management system of commercial bank authorize in Jilin province and demand for financing of enterprise.The fifth part analyzes the courses to realize the condition that the economy of Jilin Province develops with finance in harmony. In this part, it proposes that we must possess two conditions of inside and external environment condition in order to well realize the economy developed in harmony with finance. By the look of external environment condition: first, we should set up and amplify financial laws and regulations system, improve administration of justice enforce the law system. Second, set up complete service system of intermediary, especially complete social credit system. Third, strengthen the tied mechanism of the market, and improve the running environment of the financial institution. By the look of internal environment: First, set up the complete macroscopically environment of finance. Second, financial institutions such as banking institution, securities organization, safety unit, etc. should reform property relations, improve the company to manage, regard profit as the improvement of centre and manage competence, really become the market-based economic subject.The sixth part is conclusion. This part puts forward the route choice to make a harmony of economy and finance of Jilin Province development during"Eleventh Five-Year Plan"period from eight respects. First, the governments at all levels should change the idea, strengthen political ecological construction, set up and improve the social credit system, create the good external condition for economic development. Second, develop direct financing in a more cost-effective manner, set up multi-level and multi-channel financing system. Third, Catch the historical opportunity of revitalizing the old industrial base in Northeast China, make and implement the financial circles development plan in Jilin Province actively. Fourth, accelerate the shareholding system transformation of state-run commercial bank, reduce the internal transaction cost, and realize the pluralism of main part of property right. Fifth, strengthen controlling and risk management inside the state-run commercial bank, solve the question left over from history properly, create the good social economic environment for economic development. Sixth, upgrade the marketing idea, change the form of operation and administration, and offer Omni-directional finance service for customer. Seventh, brings about an advance in urban commercial bank, offer essential financial support for local economic development. Eighth, strengthens intersectional link, take precautions against and dissolve the systematic risk.