The Transformation And Evolution Of The Relationship Between Local Banks And Local Government

As a new type of banking institutions, the city commercial bank, evolved from the restructuring of urban credit cooperatives, has become an important part of China’s financial system and special groups with the past twenty years of rapid growth and development. Local governments have played an indispensable role in the development of such city commercial banks, is closely connected with urban commercial banks. The development of the city commercial bank in China is inseparable from the strong support of the local government while the local economic development also requires financial investment in urban commercial banks.City commercial bank, as the product of local government policy, positions itself to serve the SMEs and supply financial support to them in the early days of its establishment and the more important role of it is to serve the local economy and pave the way for its development. Therefore, while enjoying the policy and the resources of the local government, city commercial bank is also intervened by the local government. With the reform of financial system in our country and the continuous development of bank industry, the system that local government controls city commercial bank hinders the development of the city commercial bank, so we must change the relationship between the local government and the city commercial bank combined with current development situation and seek the way to establish the positive interaction between the local government and the city commercial bank. Therefore, the study on the transformation and change of the relationship between them has great practical and theoretical significance for the development of the city commercial bank.Taking the evolution of relationship between commercial banks in Shenzhen and local government as the example and from the perspective of the successful transformation experimental level of the commercial banks in Shenzhen, this paper discusses the transformation and evolution of the relationship between local banks and local government. The main contents of this paper are as follows:the first part analyzes the conditions of establishment、present situation of the city commercial bank and the definition and characters of local government. The second part introduces the foundation of commercial banks in Shenzhen, the new system of "the combination of bank and government" and the disadvantages of this system in the course of its development. The third part analyzes "the separation of bank from government", the reform of commercial banks in Shenzhen and the achievements after the reform. The fourth part discusses the local participation and social responsibility of the city commercial bank, including participating in local economic development and helping local government solve the local governance problems. In Chapter Five, some strategies to create a positive interaction between local governments and city commercial banks are proposed.