The Research On Effect Of Chinese State-owned Banks In Economic Growth

In today’s modern rapid economic development, the country’s financial systemsoundness significantly influenced the economic development of a country. Ourcurrent financial system is dominated by the banking sector, while the four state-owned banks are the top priority in China’s banking system. Both rise and fall offour state-owned banks in the domestic financial market to compete with foreignbanks Pioneer also taken the country to participate in China’s banking industry,high-level competition in the international financial hope. Therefore, improving thecompetitiveness of state-owned banks is a priority of China’s financial development.How should we view the role of state-owned banks in economic growth, andhow to improve the efficiency of state-owned banks to maintain the stability anddevelopment of the financial system for the Chinese economy can continue todevelop steadily significant. Existing literature on the role of state-owned banks inthe study of economic growth in most developed countries, the practice is based onthe commencement of the study of Chinese state-owned banks and economic growthare also the majority of classical economic theory based on analysis that inefficientstate-owned banks can not promote economic growth, this analysis does notconsider the Chinese banking system and the unique circumstances and history, butalso with the actual stage of China ’s economic development is not consistent, sothe analysis of the role of Chinese state-owned banks in economic growth hasimportant theoretical and practical significance.This paper is divided into five parts in the structure: the first part is anintroduction, describes the background and significance of the topic, the paperfocuses on the research question related literature; The second part introduces theevolution of the Chinese banking system and economic growth since the reform;the third part introduces the theory to explain the impact of state-owned banks in China’s economic growth efficiency; fourth part is the empirical research, therelationship between the four technical indicators selected state-owned banks andother control variables studied and economic growth; fifth part conclusions andrecommendations.