Research On Relevant Issues Of Financial Infrastructure Construction In Jilin Province

Financial infrastructure construction is the material basis for financial development and intensification. And it is also the fundamental condition of financial maintenance. To build the complete financial infrastructure may not only enlarge fixed assets investment to boost economic growth, but also improve local financial service to foster local economic development. Because financial infrastructure construction is playing an important role in the financial system, in countries around the world especially developed countries, financial infrastructure construction is highly valued. Although financial infrastructure in our country is weak, achievements in our country's financial infrastructure construction are great in recent years with the continued intensification of financial reform.The High Value Payment System, Bulk Electronic Payment System, Check Image Clearing System and Bank Card Payment System have been officially launched since December 2003. And in 2008 Foreign Currency Settlement System will start operation. Nowadays, our country's payment system has China National Advanced Payment System as its core, commercial banks'intrabank fund transfer system as its basis and at the same time, it also includes clearing houses and foreign currency settlement systems. Moreover, our country's payment system has adopted the real time gross value settlement mechanics and payment versus delivery system in bonds transactions. In China, financial insurance system, judicial environment, and the governance of financial institutions and the enforcement of financial law have been improved; accounting standards are geared to international standards step by step; rights of creditors are lawfully confirmed and protected; pilot credit information programmes on Chinese businesses and individuals have been launched; anti-money laundry regulations have been formulated and relevant functional mechanism have been set up; supervision on anti-money laundry and financial institutions have been fortified; investors'right protection systems in banking, security and insurance industry have been built or improved.With the rapid development of commercial banks'restructuring, commercial banks have great capability to innovative their operations, to expand their multi-level capital market and their financing channels, to develop comprehensive and derivative financial services and to promote a large amount of intermediary services. However, there is disequilibrium in our country's local financial infrastructure construction. In other words, the more developed the local economy is, the better its financial infrastructure construction is. And vice versa. Many factors may result in such disequilibrium, for example local environment factors, economic factors, financial factors and public policy factors. Jilin, as one of less developed provinces, has birth defect as to financial infrastructure construction. Therefore, how to effectively improve Jilin Province's financial infrastructure, to promote ability to form capital and to improve the output out of capital, to foster local economic development are essential issues of our study.In recent years, with the implementation of strategies of revitalizing the north-east industrial base, there are great progresses on Jilin'Province financial infrastructure by the drive of technology, market and profit. During the process of financial system reform and financial innovation, financial institutions in Jilin Province take advantage of network hardware facilities, develop comprehensive and derivative financial services and the financial settlement system and financial insurance system have also been improved. But the economic situation in Jilin, financial institutions'working cost, awareness of risk-prevention, innovative consciousness in financial services and the operating rules, to some extent, block the development of finance in Jilin and have negative influence on regional economic growth. This essay is to make research on the real situation of financial infrastructure. It analyzes the case and relevant data to express the exiting problems and formative reasons of financial infrastructure in Jilin, to suggest ways to improve financial infrastructure and provide the down-to-earth reference for healthy development of Jilin finance. The essay consists of 4 parts:The first part: the theoretical analysis of finance as an impetus to economy. This part introduces some foreign experts'view on the relationship between economy and finance. Then it analyzes how the development of finance pushes the growth of economy and it concludes that financial development is necessary for regional economic development, according to various theory of regional economy.The second part: the relative analysis of foreign financial infrastructure construction. This part mainly introduces the present condition of financial infrastructure construction in EU and the US etc. And there are following common features:1. The dual role of the central bank as the supervisor and operator of the system.2. The system structure is fairly complete and the settlement system is advanced.3. The main point of the central bank's regulation is risk.4. Self-evaluation and comparison are made to the system at regular intervals, on the basis of the core principle.5. The US and EU are trying to make the credit information and anti-money laundry system perfect.Analyzing these common features, the author reaches the conclusion that financial infrastructure construction in these developed countries is playing an important role in economic development.The third part: financial infrastructure construction condition in Jilin and its influence on finance develops. First, this part introduces the present condition of Jilin financial infrastructure construction. Second, it analyzes the above condition and explains the existing risks and problems. The existing problems mainly include:1. the financial infrastructure in Jillian is still backward and the settlement way is single.2. The payment system in the rural areas is weak .3. Inadequate promotion leads to less knowledge of the importance of financial infrastructure.4. There is a shortage of inter-disciplinary talents.5. Disequilibrium in financial development exists and financing channels are limited.6. Financial institutions have weak power to make profit.7. The Third Industry with the center of finance develops much more slowly than the Second Industry. And the existing risks mainly include:1. the payment and settlement risk.2. the moral risk. Finally, the author analyzes in detail the reasons that the lagging financial infrastructure in Jilin hinders the development of finance. And the reasons are: 1. the financial infrastructure in counties lags behind, which blocks the development of regional finance. 2. the limited financing channels give little support to local economic development.The four part, some suggestions for enhancing financial infrastructure in Jilin. The author puts forward relevant suggestions for financial infrastructure in Jilin. The suggestions include: 1. to optimize the financial market trading system step by step. 2. to optimize the local payment and settlement system in county or town progressively. 3. to optimize the insurance system gradually.Finance is the core part of modern economy. In the market economy, finance is playing an important part in economic development. And without the development of financial infrastructure, finance could not develop. Financial institutions ought to be innovative and provide more trading ways, trading channels and more reliable trading insurance and give material support to sustainable development of finance in Jilin.