The Research Of Financial Mechanism Transforming Savings Into Investment And Regional Economic Growth

From the perspective of economic growth, finance makes a direct effect on capital accumulation process and its configuration process. Read from the capital accumulation process, the finance connects the process of savings one end, and one end of the investment process. As a potential channel for savings and investment, finance plays a role of mobilizing and allocating savings to guide them into investment, thus Financial processes has affect on the saving-investment flows and resource allocation efficiency, thereby on economic growth and development.In theory, the financial system is the institutional arrangements to change savings into investment in the economy . The financial system consists of financial institutions, financial markets and financial assets, promoting the conversion of savings and investment, namely, financial markets'capital formation function.In order to cope with the impact of the global financial crisis and maintain sustained and balanced economic growth, and to improve the transformation of savings into investment, the financial system is particularly important to improve the function of. The financial system is the intermediary of making the savings into investment, the savings are changed into investment by the financial system. A modern financial system has five elements: namely money circulation standard by the currency system, financial institutions, financial markets, financial instruments, systems and regulatory mechanisms. This article takes the mainstay of the financial system - financial institutions (bank-dominated financial institutions) and the capital markets for financial functional as analytical objects, The main analysis is the savings into investment—functions of banks and capital market and how to improve it. Take the theory of financial development, financial and economic relations, regional financial theory as the theoretical basis and prerequisite for, and analyze the situation in Shanxi Province. Designed to stress the importance of the perfection of saving into investment mechanisms of the financial system, enabling financial institutions and financial markets, the efficiency of resource allocation can be improved, So as to promote regional economic growth.