The Efficiency Of Commercial Banks And Economic Growth In Shandong Province:an Empirical Study

For a long period, the studies of the theory of economic growth are focused onthe growth factors and the role of financial factors are ignored. Due to the importanceof financial factors in the study of modern economic growth, we should also examinethe causes and mechanisms of economic growth from a financial perspective. Chinahas been a bank-based financial system structure. But capital market development isnot so well-developed in Shandong Province. It is dominated by the commercialbank-based financial structure. Financial resource as a rare resource, the space forimproving its size and structure is limited. So the crucial factor for the futuredevelopment of the commercial banks is the improvement of efficiency. Under thiscircumstance, the study of the commercial bank efficiency and the relationshipbetween economic growth is of great practical value and theoretical significance.This thesis reviews the theory and literature on the efficiency of commercial banksin Chronological order, and then mainly comments on relations between commercialbanks efficiency and economic growth in China, and then analyzes the relationshipbetween the efficiency of commercial banks and economic growth theoretically,including the definition of the efficiency of commercial banks, the interactionmechanism of the efficiency of commercial banks and economic growth andefficiency of commercial bank system, combined with the situation of the commercialbank system in Shandong Province and the access of data to construct relativeindicator variables, and then carry out the empirical research of the relationshipbetween Shandong Province efficiency of commercial banks and economic growth.The empirical research mainly consists of Unit root test of indicator variables ofShandong Province efficiency of commercial banks and economic growth. Then,analyze the variables using the multiple linear regression analysis and Grangercausality tests to get the inspection result. And this thesis makes a summary of theinspection result of the empirical research. Firstly, the effect of loans on economicgrowth is the financial repression, and the effect of technological innovation canpromote the growth of the economy, and efficiency of capital accumulation and competitive efficiency of the bank have no obvious impacts on economic growth.Secondly, Granger causality tests only indicates that economic growth has apromoting effect on loan investment. But this does not correspond to the result of themultiple linear regression analysis, which shed some light on the suggestions putforward in the following parts of this thesis. Finally, on the basis of the empiricalresults, combined with the specific circumstances of economic growth anddevelopment of commercial banks in Shandong Province, this thesis raises somerelative proposals to improve the efficiency of commercial banks in ShandongProvince and the relationship between economic growth: in macro-economicenvironment level, guarantee the mutual development of economic growth andcommercial banks; on level of macro-financial ecological environment, dispose therelationship between government regulation and market competition properly; onmicro-Bank level, offer different proposals according to the differences andsimilarities of the efficiency of state-owned commercial banks and small andmedium-sized joint-stock commercial banks. State-owned commercial Banks shouldactively strengthen the consciousness of competition and improve the bank assetsstructure and quality and joint stock commercial Banks should increase investment intechnology innovation. And both of them should attach importance to the cultivationof the talent, distribution and encouragement, and speed up technological progressand innovation.