The Research Of Commercial And Industrial Loan Of Baoding Between1912to1945

As the downfallen political city inland, Baoding’s economic had showed a decline trendsince the period of Republic of China. Under the society turbulent environment, the city’sindustry and commerce suffered huge losses, and faced an unprecedented predicament. Thecity needs to obtain financial support urgently. But at that time, the old type financialinstitutes were fading down themselves and not possible to play a role to promote thedevelopment of the industry and commerce. The new type financial institutions like bank,although they gradually made the dominant position in the financial market.Due to theserious imbalance geographical distribution and all sorts of regulation, the effect of financialsupport to industrial and commercial is very minimal. In the period of republic of China, thedominant position of traditional commercial had decided the role of the credit loan in theentire social credit system. But along with the social economy languishing, in order to reduceto loan risk, the Mortgage loan began to playing the dominant role in the social loan systemby the financial institutes. The leading rate, which is easy to effect by the market situation,was keeping rising during the Puppet period, accelerated the decline of Baoding’s finance,industry and commerce.The lack of financing channels is the main bottleneck of Baoding’s economicdevelopment. Because depress of economic, Baoding’s development was seriously laggingbehind in modern time and becoming one of the few status down city in China.