Research On The Impact Of Bank Credit On Regional Economic Growth

The relationship between bank credit and economic growth has always been the focus of domestic and foreign scholars. Since the 30 years of reform and opening up, China's economic has developed rapidly and made remarkable achievements. At the same time, China's Bank credit also showed a sustained growth trend. Especially after the outbreak of the financial crisis, the government has promoted the extraordinary fiscal and monetary expansion policy, so that the banking industry in China has entered a period of rapid expansion. A large amount of credit delivery made China's economy recovered before the recovery of the western developed economies. Credit's positive effect on economic growth has become increasingly obvious. The rapid growth of credit has supported the rapid economic growth since China's reform and opening up, which has become an important driving factor for economic growth in this period. However, since the third quarter of 2010, China's economic growth has changed significantly, and the economic growth rate decreased significantly. With the economic slowdown, China's annual incremental credit have maintained a relatively high growth, which makes us very confused, why credit growth and economic growth appear inconsistent situation in this particular period? As a very important variable to the microscopic operation and macro control in our country, what is the effect of credit on economic growth actually? Meanwhile, China has a vast territory, so different regions have a clear imbalance in the level of economic development, economic resource distribution and industrial distribution. With the rapid development of China's economy, regional economic development gap is widening, and the imbalance of bank credit in each region has become increasingly prominent. Whether there is a certain correlation between the two is worth further analysis. The exploration of these questions is the starting point of this paper. Study the characteristics of our country's credit and analyze the mechanism of credit on economic growth. It has important practical significance for promoting regional economic sustainable and healthy development under the background of the "new normal". In this paper, based on the review of relevant theory and literature at home and abroad, we make a statistical description of the current situation of China's economic growth and the total amount of bank credit and the structural characteristics. Secondly, by using panel data of China's 31 provinces from 1993 to 2013 and the time series data of 1978-2013 we make an empirical analysis and test on the impact of bank credit and economic growth and from the overall and regional level, and get the following conclusion:(1) Bank credit plays an important role in the regional economic growth, and the role of bank credit in the three major economic zones is obvious. However, for the three regions, bank credit is not the main source of economic growth. For the eastern and central regions, government expenditure has the greatest contribution to economic growth; while the western region's economic growth is mainly driven by investment in fixed assets, and the contribution of bank credit to economic growth remains to be strengthened.(2) The contribution of bank credit to economic growth has regional differences. From the perspective of the contribution of credit funds to GDP, the central region is higher than that of the eastern and western regions, the role of bank credit in China's economic growth showed a decreasing trend from east to west.(3) Bank credit of different periods have a positive effect on economic growth, but the effect is different. The short-term credit promotes economic growth rapidly and gradually weakened, long-term credit is obviously lagging behind and for a longer period of time to promote economic growth.(4) The structure of China's banking credit still exists some problems: The term structure of credit is not reasonable, industry distribution imbalance and regional uneven distribution and so on, which decreases the efficiency of the allocation of credit funds, affecting its function in promoting economic growth.At the end of the article, the author makes a summary of the results of the analysis, and put forward policy recommendations to optimize the bank credit in order to promote the healthy development of regional economy combined with the practical situation.