Research On Relationship Between Sichuan Province Bank And Economic Development In Sichuan

The emergence and development of Chinese modern local banks have reflected the inherent requirement of local economic development at that time, together with the National Bank and commercial banks constitute a banking system in modern China. Different from the National Bank and commercial banks, local banks have their own unique creation and development, business scope is far more than commercial banks. Relationship between local banks and local economic development is very close.As an important local financial institution in Sichuan during the period of the Republic of China, Sichuan Province Bank made some contribution to the economic development in Sichuan. Especially during the period of Anti-Japanese War, Sichuan Province Bank received the country’s financial policy, expanded agricultural and industrial loans, helped the production career, laid Sichuan Province financial networks, swapped local financial, played a positive role in enhancing the resistance forces. But restricted by the external political, bad economic situation and their own insurmountable defects, this contribution was limited. It is of great significance to study the relation between Sichuan Province Bank and Sichuan economic development during the period of the Republic of China for exploring the relationship between the local banks and local economic.This paper is divided into four parts. The first part is the preamble of the article, describes the background and significance of the topics, as well as the brief summarization on the study of Sichuan Province Bank during the period of Republic of China, and then proposes the possible innovations and inadequate of this article.The second part mainly clarifies the history and business operating conditions of Sichuan Province Bank during the period of the Republic of China. According to the different historical period, its development can be divided into three stages, which are before, during and after the Anti-Japanese War. Before the Anti-Japanese War Sichuan Province Bank had just set up soon, capital was weak and branches were few. After the outbreak of war, the government’ capital was transferred from Nanjing to Chongqing, Sichuan became the political and economic center. The coastal industrial enterprises moved inland and created a favorable external environment for the development of Sichuan Province Bank, in order to adapt to the development of business, after several restructuring, capital expanded rapidly, and organizations gradually perfect, the branch grew rapidly. But the phenomenon that Sichuan Province Bank was affected by the government of Sichuan province during this period was more and more serious, disadvantages exposed gradually. After the Anti-Japanese War, the domestic environment was rapidly deteriorating with the outbreak of the civil war, in a serious inflation environment, Sichuan Province Bank showed decline trend.The third part analyzes the relationship between Sichuan Province Bank and economic development in Sichuan. It is mainly reflected in the following aspects:1, Agriculture. Sichuan Province Bank not only offered various forms of agricultural credit business, but also sent their staff to guide organizations around handicrafts Association, helping local farmers to develop production. However, due to various reasons, the proportion of agricultural loan was very small, which limited contribution to the agricultural development in Sichuan.2, Commercial and industrial. Due to the strategic position of the rear base areas, the development of production became the primary task of the wartime in Sichuan, Sichuan Province Bank not only increased production career loans, advocated the native products loans, but also invested industrial and mining enterprises which related to people’s livelihood. In addition, in view of the difficulties for small business development, access to financial resources was not easy, Sichuan Province Bank used various forms of ways to support the small business.3, Financial. Because Sichuan Province Bank has the dual function of nature, it is inevitable to contact tightly by the government of Sichuan province. Enjoyed agent provincial coffers privileges; a lot of money was used as a financial cushion at the same time, which caused serious influence on normal business.4, Currency circulation. Sichuan Local Bank issued banknotes and created favorable conditions for the unification of the Sichuan currency. Sichuan Province Bank issued coins coupons to ease the lack of currency on financial markets, to provide the convenience for fiat. But later the banknotes and coins coupons were issued too much, which caused heavy losses to the people in Sichuan.5, Financing. Sichuan Province Bank absorbed separate social capital and laid the financial network of Sichuan, promoted the financing of Sichuan province.The fourth part is conclusion of the essay. First it is affirmed that Sichuan Province Bank during the period of Anti-Japanese War made positive contributions to the fight, then the article reviews the development of Sichuan Province Bank, makes an objective evaluation of its role in the local economic development in Sichuan:it made a certain contribution to Sichuan economic development, but this contribution was limited, fell far short of the aim of its establishment. Then the article analyses the reasons for this result, draws the conclusion:as a local bank, in order to achieve development, firstly they must get their independence, secondly they should combine the characteristics of the local economy, and coordination make a long-term development between themselves and the local economy.