Finance Institution Change And The Bank Industry Development In Recent Time In Northwest China

After the Opium War, modern finance came into being and worked up in China. During finance modernize process, finance in norrthwest China was in a behindhand situation. Among many foctors which conflacted to the industry, one of the most important factors is institution. It shows in this paper that the faultiness in institution structure and the Lock In machenism in institution change are what really constrains finance industry in northerst China. In theory aspect, this paper, recuring to the new-institutional economics, studied the structure of institution and the causes of institution change, and found out how the Lock in machenism formed and acted. And also, this paper studied the historical materials of finance industry in northwest China, and emphasize each period society economic growth situation and system formation. Studying how economic institution restrict finance institution and how the conomic progress requires new finance institution, this paper analyzed the cost and benefit during finance institution change, and tesed the Lock in machenism in northwest China. Moreover, based on how to break the Lock in machenism, the paper proposed some ways to develop modern finance institution in northwest China.