Influence Of Financial Reform And Private Banks On Wenzhou Model

Premier Wen Jiabao decided to establish a comprehensive financial reform pilot zone in Wenzhou, Zhejiang, and identified twelve key tasks of comprehensive financial reform in Wenzhou in the State Council executive meeting. A comprehensive financial reform pilot area embodiments news conference of Wenzhou was held on November 23,2012 to formally announce the Wenzhou financial reform rules. Since last year, calls for private banks continued. Private banks will launch 3-5 pilots in 2014, with the implementation of a limited license. Wenzhou had a booming economic development since Chinese economic reform, and in 1985 the word " Wenzhou model" appeared for the first time in the "Liberation Daily". However, from Asian financial crisis to the U.S. subprime mortgage crisis, economic growth of Wenzhou slowed down. "Wenzhou model" has gradually been forgotten. This paper starts from the origin of "Wenzhou model", and analyses the reason of the disappearance of "Wenzhou model" in recent years, and finally discusss how the financial reform and private banks work on the "Wenzhou model".