Empirical Study On Factors Influencing Regional Financial Stability In Jiangsu Province

In recent years,all kinds of financial risk events,occur repeatedly and the financial stability become the social issues.Regional financial stability is the key to the development of national and regional economic stability,and also the basis and condition for the sustainable development of social economy.Therefore,the study of regional financial stability,the construction of regional financial stability evaluation system and the precaution of regional financial systemic risk are very important to achieve regional economic development,the construction of regional financial security system and the promotion of social financial sustainable development.This paper reviews the theory of regional financial stability studies both at home and abroad.The regional opening to the outside world,the regional economic development level,the regional financial development level,the social development level and the regional economy development level are the five aspects which analyze the main factors influencing the stability of regional finance,and clarify the conduction mechanism of the development of regional financial stability.On this basis,from the above five aspects of factors which influence the regional financial stability in Jiangsu,this article builds the regional financial stability evaluation index system including 5 first-level indexes and 20 second-level indexes.This thesis collects quarterly data from 2011 to 2017,measures the development trend of the regional financial stability evaluation index in Jiangsu with principal component analysis(PCS),and analyzes the main factors affecting the regional financial stability evaluation index in Jiangsu with stepwise analysis regression method.The empirical results are mainly as follows:since 2011,the development trend of regional financial stability assessment indicators in Jjiangsu has shown a "u-shaped" trend of first declining and then slowly rising;the facts,such as regional gross domestic product(GDP),the degree of opening to the outside world,the industrial production growth rate,total social retail goods consumption and income,financing balance of social financial structure and loan-to-deposit ratio,play a positive role in maintaining financial stability in Jiangsu.The total social investment in fixed assets to maintain the function of the regional financial stability is not obvious.The corporate and banking indices also play a positive role in regional financial stability.Finally,this article raises the suggestions and countermeasures for maintaining regional financial stability in Jiangsu from the reinforcement of regional economic development,the innovation of financial products and services,the reinforcement of the regulatory requirements for the financial sector,the establishing and improving of the regional financial stability evaluation index system in Jiangsu,the inforcement of the function of financial regulators and functional departments coordination and construction,the enhancement of the management of the financial institutions and the role of the government.