Fujian Province’s Financial Ecological Running Situation And The Countermeasures

With the rising status of local finance in the process of the local economicdevelopment and the expansion of its positive influence, how to improve financialecological environment for promoting the benign development of the local financialindustry has become an inevitable topic in provincial economic development. Locatedbetween the Yangtze river delta economic zone and the pearl river delta economiczone, Fujian enjoys a relatively strong fluidity of financial resource. How to improveits financial ecological environment, and gather its own financial resources, havebecome the key of the future economic development of Fujian province.This paper adopts the method of statistical analysis combined with time seriesmodel, static and dynamic analysis research, and conducts a systematic andcomprehensive statistical analysis and empirical research on the ecological functionand characteristics of Fujian’s financial sector. In the end, it offers some advices onhow to improve the current situation on the basis of the existing problems.First, the paper defines the concept of the regional financial ecological system,structure, operation mechanism and operative situation, which is the theoretical basisof statistical analysis and empirical research. Second, comparing with the nationalaverage and that of Jiangsu province, we select the status of financial industry in thelocal economy, the banking system, stock system, insurance system as indicators tostudy regional financial ecological operation situation of Fujian province. Third, weadopt the entropy weight method to evaluate the financial ecological status in sixsoutheast coastal provinces. We choose the indicators mentioned above asexplanatory variables to conduct empirical analysis on the main factors of Fujianprovince’s financial ecological operative situation through the error correction model.Finally, based on the results of statistical analysis and empirical research, we offersome advices on how to improve the current situation.We have reached some main conclusions. First, compared with the six coastalprovinces financial ecological environment, the financial ecological operativesituation of Fujian province is still in a relatively backward position, being the fifth ofthe six provinces. Second, in combination with the current situation, we have conducted profound study on the factors that affect Fujian province’s financialecological evaluation index which have the highest weights(added value of thefinancial sector/GDP).From the perspective of long-term equilibrium, we have foundthat the proportion of RMB loan balance to RMB deposit in financial institutions, theproportion of the domestic loans from the investment in fixed assets to the sum of thedomestic loans from the investment in fixed assets and self-raised funds and the ratioof the medium and long-term loans to loan balance in financial institutions have apositive impact on the indicator. Third, based on the empirical analysis, we haveoffered some reasonable optimization countermeasures on Fujian province’s financialecological principal and financial ecological system operative mechanism.