The Modern Transformation Of Shanxi Draft Bank

With the integration of the world economy, finance has played an important role in economy that we cannot ignore.The financial system not only affects the efficient flow of the country’s capital, but also influences its economic development. Now, Finance is more closely related to every individual in society. Finance has become an integral part of economic development. For example, through stock market、 bond market and money market, bank transfers funds’ surplus and deficiency. For the injection of needed funds, it has drive industrial and commercial enterprises developed more prosperity. Therefore, the study of the financial sector can not be ignored; it is worth the academic attention.As Chinese traditional financial model, Shanxi draft bank has a larger representation. Therefore, this article will study Shanxi draft bank so that we can demonstrate the development of traditional financial in china. Meanwhile, the author added the evolution of Western financial to explore the differences between Chinese and Western financial development. What’s more, through this study we can know the reasons that cause such difference.First, the article will sort out the origin of Banks in England and Chinese, from the source to compare the differences between two countries. Then, we will study the most representative points in finance, such as, treasury agent, notes issue, relationship with other traditional finance to explore the difference between the two banks and the late development difference. Finally, by analyzing the macroeconomic environment and political differences in tow countries, this paper will explore the autocracy’s impact on financial development in a country.