Analysis On Supply And Demand Non-equilibrium Of Financial Institutional Change In China

Along with the economic reform since the reform and opening up, China's financial institutions have undergone changes in course of over 30 years and achieved remarkable results, as the institutions of diversified financial property rights have basically established and the competitive system of financial institutions have taken shape preliminarily. However, as the model of government-led financial institutions change has not been fundamentally changed, the demand of induced financial institutions change can not be effectively satisfied under the intervention and constraints of the government power, resulting in the non-equilibrium between the supply and demand of China's financial institutions and being a basic obstacle which affects the development of China's financial and economic. Paper firstly concludes the mandatory, progressive and lag features of the path of China's financial institutions change on the basis of reviewing the progress of that since reform and opening up, and then focus on using theory about the supply and demand ,equilibrium and changes of institutions to analyze the non-equilibrium of China's financial institutions change. Especially this paper constructs a binary country's utility function in application of economics principles and further analyzes the function's stage characteristics and variables'content with static analysis methods in economics and empirical methods; subsequently paper selects a view of non-formal financial institution as the further evidence of non-equilibrium characteristics of China's financial institutions change. In addition, the paper draws several meaningful conclusions by analyzing two developed countries—the USA and German's financial institutions change experience. Finally, the paper lists a lot of non-equilibrium defects of changes in China's financial institutions and proposes specific policy recommendations for them. The last conclusion drawn by this paper has very good reference for China's future financial institutions changing towards an equilibria direction.