A Study On The Financial Support For The New Urbanization

At present,our country is in the middle stage of urban development,rapid development and great population migration.Public infrastructure construction,agricultural modernization,regional economic development,transfer of rural labor,social security and industrial structure upgrade require comprehensive financial service and a lot of money.Finance is an important part of the investment and financing system.It should play effectively in finance and resource allocation function.Finance should ensure that the urbanization process will get the effective capital support.However,financial support for the urban construction is restricted by many factors,such as the system of financial service is not equally distributed,serious product homogeneity,the procedure is too multifarious and the threshold is so high when you need money,serious credit environment and the accumulation of local debt,all these questions have seriously affected the proceed of many projects and reduce the efficiency of the urbanization construction.So,in this paper,I hope to break through the bottleneck of funds,based on the summary of the analysis of the present situation of financial and through the empirical analysis,break through the limitation of the existing pattern of urbanization,give full play to the financial support for the villages and towns,infrastructure construction and emerging industries.Therefore the construction of urbanization can speed up fundamentally.Firstly,this paper will review the relevant research at home and abroad,and analyze the financial development,new urbanization and the inner mechanism of them,to lay a solid foundation for the empirical analysis part.Secondly,analyze and summarize the current situation and the problem of the financial system and new urbanization issues.Next,in order to comprehensively measure the new urbanization,this paper respectively on the economy,population,society and resources environment index system of principal component analysis for economic index and population index,social index and resources environmental indicators four dimensions of the related data,and then continue to use the principal component analysis to data from four dimensions of new urbanization.Fourthly,analyze the relationship between financial system and urbanization using the fixed effect panel model.The results indicate that the development of insurance industry and financial environment rather than banking industry benefit new urbanization effectively.It means that there are many questions when banking industry plays the role of financing function indirectly.1.Although villages are the most important part of new-type urbanization,the structure of financial institutions is too simple,the cover percent of branch is too low,financial capital presents the trend of commercialization,financial institutions are mostly located in economically developed regions and cities,the allocation of resources concentrate in the center of city overly.2.The financial services and product innovation which are suitable to the new-type urbanization are insufficient;the products produced by financial institutions often overlook the design and supplies for countryside because their target audiences are high-end clients in cities;the development direction of many smaller Banks are still to become bigger and stronger and the business development is to meet the high-end customers,which led to the capital shortage of villages and negligible financial support for the establishment and development of many small and medium-sized enterprises.3.Due to the shortage of rural credit system,the banks reluctant to lend particularly.Finally,according to the problems of bank situation and the empirical results,put forward the corresponding policy recommendations of improving the bank service system,strengthening the construction of credit system,increasing the supply of financial services.