To Promote Regional Economic Growth In Hengyang City Bank Credit To Support Research

Finance is the core of modern economy, the development of which constitutes the main aspect of modern market economy, and it has been all the time a hot issue to probe the relationship between bank credit and economic growth. Based on the research achievements on development of finance and credit allocation, this paper aims at constituting a sound financial system for Hengyang economy through analysis on the relationship between bank credit and economic growth in this specific region.Firstly, comparative analysis on the status quo of development of Hengyang economy and regional finance and that of other five cities within Hunan province will be presented. The results indicate that Hengyang lags behind the five cities, of which economy develops slowly and industrial structure advances tardily. One of the important reasons thereinto is un-coordinated development of local finance and economy.Secondly, empirical analysis on the basic economic and financial data of Hengyang region will be conducted based on financial development theory. The results show that there exists a co-integration relationship between its financial development and economic growth from an overall perspective. Further analysis on the two significant aspects of Hengyang economy, which are industrial growth and fixed asset investment, suggests that local finance redounds to the increment of local fixed assets, but not to the industrial development, which means that local finance makes limited contribution to the regional economic growth.Finally, some suggestions regarding the growth of Hengyang economy growth through developing local finance are proposed in this paper. The first is to implement regional financial policies and perfect local financial system. The second is to strengthen the construction of financial law and credit system. The third is to promote the regulation of local economic structure.