The Efficiency Of Commercial Bank And Economic Growth In Hunan Province:An Empirical Study

Factors Affecting Economic growth has been economic growth, economists have studied the core part in the process of China’s rapid economic development, the economic effects of financial and economic growth as one of the more important factors released. Thus, the causes and mechanisms to finance research as the starting point of economic growth formation is particularly important. All along, China’s financial system remains bank-based architecture, and Hunan due to the underdeveloped capital markets so that its financial situation is also showing a bank-based. Finance as a scarce resource, expand the scale and enhance economic effects brought about by the structural limitations, so the core of the future development of commercial banks is improved efficiency. In view of this, commercial banks efficiency perspective to explore its relationship between economic growth and both endowed with theoretical and practical significance.This paper selected in Hunan Province in 1978- 2014 data to study the relationship between the efficiency of commercial banks and economic growth between. First constructed in Hunan commercial bank system efficiency, the efficiency of the use of banks, bank competition efficiency and innovation efficiency of the techniques described in Hunan efficiency of commercial banks, with the growth rate of real per capita GDP growth in Hunan Province, Hunan Province described.Secondly, VAR model ADF unit root test, multivariate co-integration test and Granger causality test between Hunan Commercial Banks Efficiency and Economic Growth in empirical analysis. The empirical results show that: first, the presence of commercial banks in Hunan Province in the efficiency of capital accumulation and efficiency of banking competition and economic growth positive effect, but there is a negative effect bank lending rate and operating efficiency rate of technological innovation and economic growth. This shows that the accumulation of capital and the efficiency of competition in Hunan banking sector can promote economic development,technological innovation and efficiency of economic growth inhibitory effects.Second, from a commercial bank efficiency and economic growth causal relations,reflecting the efficiency of commercial banks lending rates and market competition rate is Granger cause economic growth, economic growth is the Granger cause of capital accumulation. In addition, there is a not Granger causality among other indicators.Finally, the actual situation of Hunan, targeted to improve efficiency and raise economic growth in Hunan Province Commercial Bank policy recommendations: to improve the coordinated development of the commercial banks and economic growth,macroeconomic environment point of view; the macro-financial environment angle coordinate the handling of government macro-control and the relationship between market competition; depending on the type of microscopic commercial banks have focused on improving the efficiency.