Research To Regional Financial Discrepancies

China has a vast territory. Economy shows characteristics of unbalanced regional development. As the key component of modern economic system, the financial system also exist regional financial discrepancies. It is important for us to investigate relevant causes.This paper studies about regional financial discrepancies from the angle of financial geography and economic geography.First, the paper constructs an index system to measure the regional financial discrepancies, using indices in financial level, structure of the financial system and contribution rate. Using factor analysis and hierarchical clustering analysis, we measure the regional financial discrepancies of Shandong province. The paper has a comparative analysis through various indicators of the index system of regional financial discrepancies.Secondly, the paper discloses the determinants for regional financial discrepancies from an angle of financial geography. The analysis suggests a few factors that contribute to regional financial discrepancies in China, including regional economy development discrepancies, structural discrepancies of regional economy, degree of market in regional financial system, geographic factors, financial character and entrepreneur screening.Regional financial growth subject to the influence of various factors will have a different development path, from the angle of spatial economic interaction and financial geographical movement, the paper puts forward the path selection of regional financial growth of Shandong province ,including maintaining a moderate gap in financial development, developing regional financial centre, developing Jinan, Qingdao Double regional financial centre, building regional financial credit system and promoting regional financial cooperation and improving regional financial organizations, developing regional small and medium-sized financial institutions.Finally,using this theoretical analysis and empirical conclusions, the paper puts forward policy proposals about financial development of Shandong province, including improving the support system of financial policy, encouraging financial innovation, developing regional small and medium-sized financial institutions and promoting regional private financing development.