An Empirical Study On The Impact Of Henan City Commercial Banks On Local Economic Growth

At present,the downward pressure of the domestic economy is increasing,and Henan province is facing the pressure of economic growth decline,which needs the strong support of local financial institutions such as urban commercial banks.For a long time,the development of local financial industry in Henan province has lagged behind,and the reform and rise of urban commercial banks is to change this situation.Henan city commercial bank is evolved from the city credit cooperative and has the innate mission of serving the local economy.For decades,under the guidance and support of policies,Henan city commercial bank has become an important local financial institution through continuous reform and development,and is more closely connected with the local economy.During this period,whether the capital of Henan province significantly promoted the local economic growth,and how to promote local economic growth.Further,how to improve the level of urban commercial banks to serve the local economy,to ease the pressure of economic growth decline in Henan province.Therefore,it is necessary to analyze the impact of urban commercial banks in Henan province on local economic growth to explore these problems.Firstly,based on the research of domestic and foreign literature,this paper reviews the literature on the relationship between urban commercial banks and local economic growth,and summarizes the relevant concepts and theories.Secondly,it analyzes the status quo of the city business and the local economic growth in Henan province.Next,by using the fixed-effect model and the data of Henan provincial capital commercial banks from 2007 to 2018,the empirical analysis is conducted to study the impact of the loan scale,loan-to-deposit ratio and regional bank concentration on local economic growth.Finally,the conclusion is drawn that the increase of the credit scale of urban commercial banks in Henan province can promote the local economic growth.The loan-to-deposit ratio of Henan provincial capital has a significant positive effect on local economic growth.Capital firms in Henan are also boosting local economic growth by reducing the concentration of banks in their regions.Therefore,capital firms in Henan province should improve their service level,adhere to market positioning,and improve their ability to convert savings into credit resources.At the same time,the government should continue to support small and medium-sized banks such as city commercial banks,so as to improve the local banking structure,promote effective market competition,and promote economic growth.