The Support Effect Of Regional Commercial Bank On Regional Economics

In recent years, economy in Jilin Province has improved a lot by investments and projects. The GDP of Jilin Province increased by 14.5%, 12.8%, 13.6 and 13.7% through 2007 and 2010. The GDP per person grew 12.5% in 2008, 13.1% in 2009 and 13.6% in 2010. The amount of the GDP per person reached 31,306 Yuan and the net income of urban and rural residents increased dramatically in the year 2010. We should realize that though social economic indexes grew at a fast and unexpected rate, some of the indexes as a percentage of the nation didn't increase apparently and even decreased. Compared with developed provinces and municipalities, Jilin Province is just on the mid-term of the industrial age. Not only the small amount and non-optimal structure, but also the low effectiveness is the problem that exists in the economy. Consequently, it is necessary to convert the economic model into a healthier way for Jilin Province. The government needs to take an active lead and market economy should take advantage of its resources allocation. Finance will be indispensible in these two aspects.In Jilin Province, local commercial banks mainly include Bank of Jilin and Jilin Rural Credit Union. Founded in 2007, Bank of Jilin was named Commercial Bank of Changchun. The total assets reached 108.125 billion Yuan and deposits and loans were 87.175 billion Yuan and 64.018 billion Yuan for each in 2009. Jilin Rural Credit Union was established in May, 2004. It undertook the management, guide, cooperation and services responsibilities in its area. It was qualified with independent corporation. The total asset was 184.5 billion Yuan and deposits and loans were 142.1 billion Yuan and 98.2 billion Yuan for each.This paper takes the empirical study on Bank of Jilin and Jilin Rural Credit Union using recent data. It discusses how these two local commercial banks have effects on local medium and small enterprises and rural economy. Based on economy and finance, this paper draws lessons about the relationship between the development of finance and economic growth from the past researchers. In addition, this paper takes empirical study on the influences that local financial institutes have on economic growth combined the location with the history of development of Jilin Province. It finally concludes that local commercial banks and state-owned banks don't contribute to economic development of Jilin Province.