The Problem Of Local Economic Development To Support The Banking Sector Of Luohe

The finance is the core of modern economy. Along with the sustained and rapi d development of economic society, as well as the constant quickening of industriali zation, information technology, urbanization,marketization and internationalizatio n process, the position of financial industry plays an increasingly important role. As far as our country, indirect financing occupies a leading position. Banking instit utions is the main financing for economic development, which plays an irreplaceabl e role in gathering capital, allocation of resources,payment intermediation. Many re seaches which at home and abroad have showed that financial development realized t he promoting effect on the economy by acting on the internal mechanism of economi c development, and promoted the economy development towards a higher stage.On the basis of theoretical analysis, the paper analysed the present situatio n of the local economic development supported by Luohe city banks. Founding that Luohe city banks had played an important role in promoting local econo mic development. But also existing problems, such as insufficient financing abi lity, poor innovation ability, poor rural financial system and poor financial ecol ogical environment. Leaded to imbalance in the money and the efficiency of f unds use was not high. Finally, according to these problems, this paper putted forw ard to many targeted policy recommendations combining the actual conditions of eco nomic and banking development in Luohe city.