Research On The Development Of Financial Industry In Dongying City

Finance is the core of modern economy,which is quite important to economic and social development.With the deepening of the reform and opening up and economic globalization,finance is becoming more and more important to the economic development.At present,our province is at the crucial stage of transform of new and old kinetic energy conversion.Financial is the core role of modern economy,which satisfies the demand of enterprise financing,reduces operating costs,and diversifies operational risks.Macroscopically speaking,the development of finance industry helps to stimulate domestic demand,optimize the industrial structure and promote social employment,safeguard national economic security.Since 1992,our government has launched a series of policies to encourage the development of financial industry,which enrich the number of financial institutions and financial products,and cultivate a relatively mature financial market.The national economic system has been continuously improved.Finance industry and institutions such as banks,securities,insurances,trusts,have been vigorously developed.The comprehensive power of financial industry has enhanced sharply.Meanwhile,our government has carried out some remarkable policies in guiding and encouraging financial innovation by referencing advanced experiences of other countries.Currently,the international market is lack of demand and national economic structure is under adjustment.Under those circumstances,we must admit that the development of our financial industry faces some real difficulties such as financing difficulties of small and medium-sized enterprise,simple structure of the services of our financial institutions,lack of diversity of financial services.Those problems are either common and chronic or gradually exposed.The deep analysis and settlement of those problems is of great significance to optimize the financial environment and promote the development of the financial industry.In this paper,I will discuss the development of financial industry by analyzing the problems in the development of financial industry in Dongying city and proposing some suggestions in policy-making.Dongying differs from other resource-based cities such as Daqing and Erduosi.The diverse industrial structure of Dongying is made of Nonferrous Metal manufacturing,auto part manufacturing,petroleum equipment manufacturing etc..Recently,under the reasonable guidance of government,financial industry structure greatly boosts the fast development of those industries.Some typical enterprises have accumulated rich experiences of financing and reducing the financial costs in capital markets.However,for the past few years,bank loan alone cannot meet the financial demand of those rapidly developing industries.Therefore,this paper summarizes the achievements of the development of Dongying financial industry by statistic analysis and field research and aims to solve the gradually exposed problems such as lowproportion of direct financing,the financing difficulties of small and micro enterprises,the lack of agricultural financial services,and the poverty of financial innovation.The author proposes reasonable suggestions from different aspects by drawing in experiences such as the government-propelled development of direct finance of the United States;the venture capital fund guided by the Germany government to promote the development of medium and small-sized enterprises;the country-bank development experience of the People's Republic Of Bangladesh;the experience of optimizing investment environment of financial industry in Hangzhou city;the experience of establishing wealth-management center in Qingdao.Based on the realities that the development of Dongying financial industry is facing,the author suggests to improving the structure of financial market by guiding the development of the insurance industry,introducing the commercial banks,cultivating new financial format such as securities underwriting and credit intermediary.As to increasing the scale of indirect finance,the author proposes to increase the credit support and optimize the credit structure as well as encourage credit product innovation and lower the financing cost of the medium and small-sized enterprises.In the aspect of developing direct finance,this paper encourages enterprises to actively participate in the capital market.The author of this paper also makes some valuable suggestions in preventing the financial risks and propelling financial innovation.