Research On Banking Structure, Capital Market Structure And Economic Growth

Financial structure refers to the status and results of interacting and the relative size of the main components elements in a country’s financial system. Raymond.W.Goldsmith who are the nose studing financial structure believe that the financial structure includes the following components:the structure of financial institutionSjfinancial market structure,financial instruments structure. In general) the situation can be two ways to measure the financial development:first, the overall size of the financial dimension. It measures the "quantity"part financial system,scholars use it to measure a country’s total financial developments. The relative size of the financial amount reflects of the size of the financial sector, also reflects the growth rate of financial volume; second, the level of financial structure. It measure the "quality" part of the financial system, reflecting the ability to service the real economy or the efficiency financial system.After nearly three decades of rapid development, China is in a critical period of development mode transformation and upgrading of industrial structure.To achieve development mode transformation and upgrading of industrial structure,the financial system needs to guide and promote the real economy. China’s current financial structure is not suited to the needs of economic development,even as a disorder to constraint further economic development. Its restriction mainly in:1. The existing financial structure can not fulfil the market main body’s financing needs. The financial industry as a protected industry,which lags behind the restructuring of the real economy. So the financial system can’t meet the current needs of SMEs. Its performance in the form of financing diffcult of SMEs.2.The financial system is inadequate to support innovation capability.Underdevelopment of capital markets,ti decide the capability of support innovation is low, financial sector can’t competent the task of guiding economic restructuring and promoting Industrial upgrading.3.The accumulation of financial risks.The incomplete financial architecture,which resulting in money supply and money demand formal channel is not smooth. Under these conditions,formating our unregulated or less regulated shadow banking,private financing.Those threats to the stability of the economy.Finance as the core of market economy of resource allocation, finance structure does not match the real economy lead to economic inefficiency. This paper seeks to combine theoretical and empirical to answer china how to establish the financial system.This paper is divided into the following sections.The first part,i.e. the introduction section. Introduces the background and significance;clearly recognizing research ideas and methods; thinking the Innovation, insufficience,and which should be adding in the future.The second part,namely literature review of this paper. Drawing on ideas and methods of literature,commenting the lack of literature and thinking which part I can study more deeply.The third part, that the theory constructs of this paper.The exogenous variables sucn as resource endowments and national conditions is the Logic startBased on transaction costs,finance theory,fmancial function theory,finance, economics, finance,management,etc., as theoretical tool,summarizing the character of each categories of enterprises and studying financing mode which is suit for enterprises.The fourth part,empirical research level, in the framework of the panel model,select the appropriate financial structure and economic growth variables,and check up the relationship between variables.Finally, based on the previous studies, propose policy recommendations of optimizing China’s financial structure to better solve the existing problem.Based on the evidence, proposing the financial structure optimization principles:First,the financial structure Optimization should to match the real economy enterprise in economic entities have variety characteristics. mutual restraint and mutual promotion of the real economy,endowment structure,conditions of mutual restraint, the evolution of the industry is constantly being. All of these features determines the corporate financing decisions and financing mode.Second, finance structural optimization should conjunction with our financial national conditionsGradual reforms of the past decades has made great achievements, the reasonableness of gradual reform has also been prove by many scholars. The existing political system,economic system also affects the characteristics of China’s enterprises, which determines the financial structure to comply with this feature.Third,financial structural optimization should adhere to market-oriented Both financial capital into physical capital and physical capital into financial capital are restrained by the institution, government, information asymmetry.Which lead to the deviation can not return to the equilibrium state.Thus reducing administrative intervent the market in order is extremely important to promote the output.