Study On Credit Rationing Of China's Western Region

Since 1990's, in order to speed up the economic development of western region, our country implements the western development strategy. In the favorable background of the western region's development, the economy of western region has begun to enter the high-speed development stage. Rapid economic development needs huge demand for funds, but the development of western region's capital market lags behind other markets, the financing channels are single and the enterprise mainly meet capital requirements through indirect financing channels. So the credit market has became the main funding source of the economic development of western region. Furthermore, the efficiency level of the resources allocation depends on the efficiency of the credit market; thereby it directly influences the western region's economy which whether can maintain long-term and steady development. Since the beginning of 2000, the western region's economy has developed rapidly, but the capacity of funding for the western region is limited, and there are some inherent institutional factors in the Western credit market, so the western region's credit rationing not only has not disappeared, but also shows a kind of more serious trends, furthermore, it demonstrates a different mechanism with previous periods.Now, the credit rationing of China's western region is not only the non-equilibrium or equilibrium credit rationing in the theory of Western, but also the double credit rationing with two characteristics. The reason of this phenomenon is: on the one hand, market-oriented process of western region's credit market has been greatly accelerated due to the reform of national economy and financial system; on the other hand, non-market factors left over from the period of planned economy are also constantly delayed the pace of the market. Under the influence of the two factors, double credit rationing has formed. That is, the formation of Credit rationing has dual reason: on the one hand, the government issued tendentious policy guidance to the financial institutions; on the other hand, in the market of Asymmetric Information, banks and other financial institutions ration the credit in order to achieve their own maximize interests.If we cannot recognize the mechanism and harm of the credit rationing of western region and take appropriate measures, the western region and even the whole country's economic development will be adversely affected because credit rationing not only affect the western region's economic growth but also affect the distribution of the whole social welfare. Therefore, the significance of this paper is: by analyzing the causes, mechanisms and consequences of the western region's credit rationing, puts forward the corresponding policy, recommendations and measures to reduce the negative impact of the western region's credit rationing, in order to maintain the long-term and steady development of credit market and the western region's economy.Specifically, the study content of this paper is as follows: at first, begins with the phenomenon of the economic development of the western region, focusing on the state of credit rationing in the western region, and compares within the eastern region and the western region through a large amount of data, analyzes the causes and the status of credit rationing; Next, it begins with the actual conditions in the western region, analyzes deeply the credit rationing mechanism in different periods. From the government control characteristics under the planned system to the micro-conscious behavior characteristics of financial markets under the market mechanism were all discussed separately, which includes the non-equilibrium credit rationing, equilibrium credit rationing and dual credit rationing mechanism analysis; Finally, analyzes the adverse impact of the credit rationing and propose some appropriate countermeasures and suggestions.