Research On Credit In Gansu Province

Since financial crisis, our government issued a series of policies to promote economic growth maintaining four-billion-investment, positive financial policy and moderate loose monetary policy. Centering on the overall social development goals, Gansu government also takes various measures to stimulate economic growth. Combined with local development, banking financial institutions expand credit supply and play an active role in economic growth. But generally speaking, the size of Gansu credit still can't meet the huge demand for funds to control crisis and promote economic growth.From the theoretical and empirical aspects and based on the actual conditions of Gansu, this paper study the problem in credit and the adaptability between credit and economic growth of Gansu. Firstly, using the method of statistical description, chart analysis and comparative study, this article analyzes Gansu's current situation of credit size and structure. Secondly, with the aid of the statistical analysis software and the utilization econometrics' method, it uses the empirical method to analyze the relationship between credit and economic growth. Through the Granger Causality Test between the credit quantity and the economic output, it shows that the credit increases may lead the economic growth, but in turn, it can't. Thereafter, through verifying the relationship between the economic growth and the industrial structure and term structure of credit, it draws the conclusion that medium and long-term loans seem to make bigger contribution to economic growth than the short-term loans do, and compared to the industrial loans, the agriculture loans and the commercial loans seems to make bigger contribution to economic growth. Finally, through the empirical conclusion and Gansu's actual conditions, it analyzes the main problems of Gansu credit and makes some suggestions such as expanding the sources of funds, optimizing the credit structure, changing business mechanisms of commercial banks, optimizing credit environment for credit policy of Gansu.