Study On Optimization Of Regional Financial System In Luoyang

With the gradual implement of the strategy of the rise of central China and theconstruction of Central Plains Economic Zone, the financial system in different areashave its own characteristics. The financial industry is becoming increasinglyprosperous and presents a broad development prospects, which provides an effectivefinancial support and securities. As a central city in Henan Province with distinctregional and comprehensive advantages, Luoyang possesses new economicdevelopment opportunities. It has great value in theory and practical significance forthe development of Luoyang’s financial development and even the whole economy’shealthy running of Luoyang in order to analyze Luoyang’s regional financial systemand find optimization proposals.First, this paper introduces some theories about regional financial system andforming factors as well as the relevant definition, which lays theoretical foundation forsubsequent analysis. Then, this paper studies the current situation and problems ofLuoyang’s regional financial system. On the one hand, according to design principlesof financial competitiveness index system, we establish index system of regionalfinancial system containing26indicators from two aspects of financial indicators andfinancial explanation index and studies28selected cities empirically to analyze thefinancial competitiveness of every region through PCA (principal component analysis).On the other hand, based on financial system theories and the development ofLuoyang’s regional financial system, we points out problems of Luoyang’s regionalfinancial competitiveness system from4aspects and identify its causes. Finally,according to the current situation and problems and successful experience overseas ofregional financial system, this paper presents relevant suggestions to promote thedevelopment and optimization of that of Luoyang.