A Study On The Relationship Between Local Government And Local Commercial Banks Under China 's Financial System

The local bank plays a very important role in economic development of that area.As the progressing of Chinese financial reform system and tax reform system, thelocal government has to seize their banks tightly and intervene local commercial bankto get necessary funding to achieve their established aim. At the same time, the localbank can get into rapid development with government help. The interactive relationbetween local government and bank ultimately brings the maximum of social welfare.Chinese local government and local commercial bank’s interaction model isdiscussed in this article. Furthermore, I use Yun Nan Government and FUDIAN Bankas an example to get deep into this subject and try to establish the Fu Dian Style fromYunnan Government and FUDIAN Bank cooperation. First, we make analysis of therelation theory of local government and local commercial banks, to financialdevelopment theory and the theory of government intervention as foreshadowing,then in-depth study the relation game analysis on local governments and localcommercial banks and interactive relation mechanism, laid the theoretical foundationfor further study. Second, analysis the interactive relation situation of the localgovernment and local commercial banks, study the development process and currentsituation of the local commercial banks (take the city commercial banks for example),then analysis the interactive relation current situation between the local governmentsand local commercial banks, subsequently, to explore the local governments and localcommercial banks interact with the reasons for the formation of a relationship. Onthis basis, we analyze the specific case of the interactive relation style betweenYunnan government and Fu Dian Bank. First we explore the FUDIAN Bank’sdevelopment and background of the establishment. Then we make the mutual effectanalysis of Yunnan government and FUDIAN Bank. In addition, on the basis of theabove study we explore the countermeasures of the establishment of interactiverelation. First, we make analysis of the feasibility and necessity of interactive relation,then analyzing the formed measures of interactive relations between Yunnan government and FUDIAN Bank. Finally we conclude the above studies to drawconclusions, and combine with the inadequacies of this study and propose thefollow-up research prospects.