Study Of The Relationship Between Financial Institutions Credit And Economic Growth In Heilongjiang Province

GDP is an important index to measure the economic growth of a region, thecredit of financial institutions is an important force to promote economicdevelopment. How to keep regional economy healthy, stable, rapidly growth,meanwhile, to maximize the financial institutions to avoid from credit risk, torealize the coordinated development, that’s the problem we need to think aboutseriously. Therefore, this paper studies the relationship between financialinstitutions credit and economic growth in Heilongjiang province has theimportant practical significance.Firstly, this paper analysis the development of our province’s economicdevelopment and financial institutions credit total and structure as well as therelationship between the two. Then, it makes empirical analysis from the twoaspects of the total credit amount and structure with the total economy by usingthe method of econometrics. The results show that credit plays an important rolein supporting of the province’s economic growth. Loan scale can stimulateeconomic growth, and this effect is more evident in the medium to long termloans. Then according to the results of this study, we find that financialinstitutions credit support the indispensable role to the economic development inour province and promote the economic growth obviously. But there are alsosome imperfections, for example, the credit amount is small, the credit periodunreasonable distribution, industrial structure incline, regional distributionimbalance and the financial ecological environment construction is poor. Tosolve these problems, we need to broaden the financing channels, thecorresponding credit allocation on the period, optimize the credit structure, theadjustment of credit regional distribution and strengthen the financial ecologicalenvironment construction. We hope that we can promote the economic growthbetter and faster in our province by optimizing the credit of financial institutions.