The Influencing Factors Of The Regional Differences Of The Development Of The Banking Industry In Jiangsu Province

Since the reform and open policy, the regional banking development is unbalanced, and this phenomenon exists not only in the region, but also within provinces and cities significantly, which has become a serious impediment to the development of China's economic stability. As one of the most developed and competitive province, Jiangsu has developed into the main driving force region for supporting China's economic development and enhancing the national competitiveness. Under the background that the financial development is increasingly becoming the main driver of economic growth, we should analyze the level of financial development, particularly the imbalance between the banking sector in Jiangsu, which will help to provide effective guidance for the rapid economic growth in Jiangsu. This article aims to measure the indifference of banking development during 13 cities in Jiangsu Province, and explain their impact factors.This article summarized the domestic and overseas literature of regional financial development on the basis of the financial development theory and regional financial theory, and summed up the idea of regional banking research, which established the theoretical foundation for building the regional banking indicators and empirical analysis. In order to explore the cause of regional differences, this paper make banking interrelation ratio (BIR) as the dependent variable, and use the panel data of 13 cities in Jiangsu from 1999 to 2008 to make the empirical Research relating to the factors of indifference among the banking development level. The empirical analyses present that the banking development level has a significant positive correlation with economic development,local government behavior and per capita disposable income, especially with the factors such as economic development, which can explain the difference of regional banking development in the largest contribution. According to the empirical results, here are four proposals that will help to narrow the differences of regional banking development:implementate differentiated financial control policies, Constitute the external environment that contributes to regional banking development, promote the improvement and liquidity of human capital, and strengthen financial information.