A Research On Banking Structure And Economic Growth

Banking industry is one of the most significant parts of financial system. It affects a country's micro economy to some extent. A sound banking industry could reduce the information and trade costs. In this way, it could affect the rate, the investment policy, the technology innovation and the economic growth. A sound banking structure could also affect the development and growth of industries and economy. But in the reality, the banking structures are different because different countries and regions have different situation in politics, economy, and culture and technology. Thus it would be profound to do some researches on the relationship between banking structure and economic growth.In recent years, Chinese financial system has been improved a lot and the concentration ratio of banking industry has been dropped. But the state-owned commercial banks are still holding the market. So far, these four commercial banks are holing above fifty-five percent assets, savings and loans. However, the credit these banks supplied is not sufficient to the demands. Small and middle-sized enterprises could not get loans successfully. Thus, to promote the economic growth, the economists and policy-makers have to carry out some policies to optimize the banking structure, improve the quality of credit, and so on.The thesis studies the relationship between banking structure and economic growth. It is divided into five chapters: Chapter one is introduction, including the thesis background, the research meaning and detailed elaborate the classic theories of banking structure and economic growth; Chapter two introduces the basic concepts of banking structure, including the measurement of banking structure, the affects of different banking structure; Chapter three chooses china to study the relationship between banking structure and economic growth. Chapter four chooses Beijing to research further; Chapter five explains and compares the conclusions which last two chapters comes to. And give some suggestions on how to construct a sound banking structure in China and Beijing.