Research On Financial Ecology In Western China

Since twentieth century, financial crises have broken out frequently, making most countries in the world under financial risk. According to the data of National Statistical Bureau, Chinese financial risk index has increased year by year, which causes great pressure to Chinese economy and finance. However, the current theory of financial crisis and financial risk can not explain all the financial crises and financial risks. Chinese scholars introduced the concept of ecology into the financial field in21century, and they further put forward the concept of financial ecology which can be used to perfectly explain the causes of financial risks. All financial risks are due to imbalance of financial ecosystem. If clients of financial ecosystem are not in harmony with the transactional and when the incoordination reaches to some extent, the financial crisis will happen. The financial system is less developed and financial risks are particularly obvious in western China. Therefore, it is a significant task to accurately assess the running state of financial ecological system, avoid financial risks and seek measures to optimize the financial ecological system in western China.Based on the theory of the financial ecosystem analysis, this paper introduces the Tree-type operational principle of financial ecological system.and divides it into five components,namely financial ecological subject, micro financial ecological environment, macro financial ecological environment, financial ecological external regulation and internal control of financial ecological system.In order to understand and catch the financial ecological system accurately, this paper offers a theoretical basis. Meanwhile, it analyses the current situation of financial ecology in western China, and evaluates the whole running state of western financial ecological system as well as the developing degree of its five structural components.The result suggests that the western financial ecosystem state is quite low. Meanwhile, among the five components of financial ecological structure,financial external regulation,macro financial environment and financial internal control rank the lowest position in China’s four big areas (East, central, west and northeast). Therefore, optimization of the western financial ecology focuses on four parts, including external and internal regulations as well as macro and micro financial ecological environments.Taking Gansu province as an example, this paper analyses the current situation of financial ecology in Gansu province, In the light of its existing problems.this paper puts forward some suggestions. The first is to improve the economic foundation, perfect the governance and cultivate a good cultural system of financial ecological environment. The second is to strengthen co-operation with foreign institutions, make full use of foreign capital resources, create good political environment, introduce and cultivate enterprises, and to increase people’s income etc. The last is to build a good coordination platform between government and banks, and to construct the coordination platform between the central regulatory authorities and the Gansu financial institutions to optimize the financial ecology external regulations.