The Research On Finance Support Of Commercial Banks For City Economic Growth

Commercial banks have been the indispensable financial power for the development of local economy. It supports local economy and small or medium-sized enterprises powerfully, and at the same time, it provides consummate service for the city. Therefore, it has important theoretic and practical meaning to discuss the financial regulation and optimization of commercial banks in support of the development of city economy.This paper researches how commercial banks optimize it to support the development of city economy on the base of the theories of financial support. It discusses from four aspects as follows. Firstly, this paper establishes the framework based on the theories of economic growth, financial development, and bank efficiency, and it illustrates several theories of finance support, and then it analyzes the relationship and interaction between finance support and city economy. Secondly, it discusses the inherent mechanism that finance supports economic development, and puts forward the ways by which financial supports economic development. It stressfully analyses the mechanism that commercial bank efficiency supports economic growth. Thirdly, this paper analyses the internal problems of commercial banks, and illustrates main methods and effects that finance supports city economic development by combining the practical situation of commercial banks. Finally, this paper points out the strategic selections of commercial bank development in support of city economic growth on the base of the previous theoretic analysis and research.As a member of financial system, the development of commercial bank is closely linked with local economics growth, and its expansion, development, limits and regulations must have its own particularities. On the one hand, the commercial bank itself must have instinct expansion impulse mechanism; on the other hand, it must have tension impulse mechanism from local economic development. Therefore, commercial bank, which locates in large and medium-sized cities, has to create particular growth patterns, and has to depend on the development of local economics.