Finance and finance model essay 1: On the relationship between local finance and financial development Abstract Although local finance and finance are different in nature, they both play an important role in the economic development of a region, and they complement each other. Of course, both of them are absent and offside, which has also become an unfavorable factor hindering economic development. Measures should be taken to promote the stable and healthy development of regional economy, transform government functions and adjust finance? Back to your place? Only in this way can we ensure the harmonious development of local finance and finance under the background of industrial structure adjustment.
Keywords: industrial restructuring, suggestions on the relationship between local finance and financial development
Overview of local finance and financial development under the background of industrial structure adjustment
Overview of local finance. Local finance is an important part of national finance, and it is the distribution relationship formed by local governments at all levels to realize government functions and participate in the distribution of social products and national income. It reflects the distribution relationship between local governments and enterprises, institutions, society, organizations, residents and governments at all levels. Local governments have been actively using local finance to develop local economy, and local finance has also played a role in local economic development. Of course, the function of local finance is not static, it changes with the development of economy. 1978 since the reform and opening up, the central government has given local governments more autonomy. The local government changed its passive attitude during the planned economy period, took the initiative to attack, implemented various institutional mechanisms according to local development and economic level, and actively invested in local finance to develop the economy. For a time, the local economy developed vigorously, but it also seriously affected the macro-control of the central government to local governments. From 65438 to 0994, the central government comprehensively implemented the tax-sharing reform, and divided the consumption tax, value-added tax and income tax, which were originally the pillars of local finance, into central income and * * * income, so as to protect local interests in the form of tax refund. This measure ensured the macro-control of the central finance, but the tax-sharing reform transferred some local financial power to the central government, weakened the autonomy of local governments, and turned over the main local financial resources to the state treasury, which increased the risks and difficulties of local finance.
Overview of local financial development. Finance in a broad sense is an economic activity, which generally refers to the issuance, circulation and withdrawal of money, the issuance and withdrawal of loans, and the deposit and withdrawal and exchange. There are many kinds of finance, mainly banks, securities, funds, insurance, trusts and so on. For local finance, banks are an important part, including rural credit cooperatives, city commercial banks and state-owned banks. In recent years, with the development of local economy, the business and functions of financial institutions are constantly changing, which has also had a great impact on local finance. For example, rural credit cooperatives were affiliated to the national bank at the beginning of their establishment. In 2003, the State Council promulgated the Pilot Program for Deepening the Reform of Rural Credit Cooperatives. Rural credit cooperatives gradually got rid of the subordinate relationship with the national bank, and local governments gradually reduced their control over rural credit cooperatives. Rural credit cooperatives began to absorb shares in the form of equity structure and play a financial role according to local conditions. For another example, city commercial banks are local joint-stock companies, local governments are the largest shareholders, and a large part of banks' financial capital is used to serve local finance, which is the main manifestation of city commercial banks' financial role.
The functions of local finance and finance overlap. Local finance and local finance are not two independent functional subjects. The two complement each other and have overlapping functions. In the process of local financial reform such as rural credit cooperatives and city commercial banks, this overlapping function can be reflected in maintaining local financial stability, supporting weak links such as agriculture, rural areas, small and medium-sized enterprises and people's livelihood, and local finance and finance promoting economic restructuring. In recent years, due to the adjustment of local economic structure, local finance needs to regulate the market. However, due to the limited local financial resources, a large part of market regulation is undertaken by local finance, which plays a role under the intervention of local governments, promoting the adjustment of economic structure and alleviating the contradiction between production and demand in regional development to some extent. In the process of local financial reform, rural credit cooperatives in some places rely on local administrative means to increase capital and share, which provides an opportunity for local finance to intervene in local finance. On the other hand, the intervention of local finance in finance has led to a strong administrative color in the process of financial reform, and the leading role of the market has not been fully exerted. At the same time, due to historical reasons, it is difficult for local finance to change its thinking and adopt an attitude of helping state-owned enterprises, while ignoring those high-tech industries with development potential and market prospects, which restricts the development of local economy to some extent.
The relationship between local finance and financial development under the adjustment of industrial structure
Analysis of the relationship between local finance and finance. First, it is highly correlated. Since the reform and opening up, the socialist market economy has dominated, and the government's intervention in the economy has declined, focusing only on macro-control and relaxing supervision over the market economy. Therefore, the proportion of local government's fiscal revenue in the national fiscal revenue is relatively declining, and the local government's fiscal revenue and expenditure are even unbalanced. In order to alleviate the financial pressure caused by this, local governments began to look to the local financial industry, hoping to use the power of finance to alleviate the financial pressure and reverse the situation of making ends meet. From this point of view, the decline of local financial capacity is positively related to the increase of financial capacity, that is, if the financial industry in a region develops rapidly, the government finance in the region will also break even, and vice versa. In other words, the weakened local financial capacity is compensated by the strengthened financial capacity, so finance and finance are complementary in capital allocation and highly correlated.
Second, financial stability is a prerequisite. High risk can be said to be the biggest feature of finance, and whether the financial investment environment is safe is also an important factor related to the healthy development of local finance. Once financial institutions are exposed to risks, they will have a chain reaction, and the relevant financial institutions in the whole region, even the whole country and even the whole world will be affected. 1997 southeast Asian financial crisis is still fresh in our memory, and its scope and influence are almost unparalleled. Then, if there is a financial risk, the financial system itself is far from being able to resolve the crisis. At this time, local finance needs to intervene in mediation and use government regulation to effectively curb financial risks. Therefore, local finance is the premise of financial development and the guarantee of local economic stability. In the event of a financial crisis, local finance will take immediate action to minimize financial risks. Especially in the process of financial institution reform, there will be many bad debts and dormant accounts in rural credit cooperatives or banks, which pose a serious threat to local financial stability. At this time, local finance has played a significant role in helping financial institutions solve difficulties and stabilize financial markets.
Third, financial development is the guarantee. To evaluate the economic development level of a region, the financial development of the region is one of the necessary evaluation factors, and the development level of the financial system can often represent the financial revenue and expenditure level of the region. Under the background of industrial restructuring, since the implementation of the tax-sharing system, local finance has been unable to make ends meet. The financial industry has assumed the responsibility of some local finance, transferred some fiscal output value to local finance, assisted finance to play a role in local economy, balanced revenue and expenditure, and stabilized the level of economic development. At present, stimulating residents' consumption and activating market economy are effective means to improve the level of regional economic development. Generally speaking, raising the bank reserve ratio or lowering the bank deposit interest rate is a common measure to stimulate residents' consumption, which is also the contribution made by the financial industry to ensure regional economic development. Therefore, financial development is the guarantee of local finance. Under the background that the current industrial structure adjustment cannot be changed for a while, regional finance will rely on the development of financial industry for a long time to balance revenue and expenditure, so as to ensure the stable development of regional economy. Problems existing in local finance at present. First, the absence and offside of local finance coexist. Under the adjustment of industrial structure, local finance itself is unable to balance revenue and expenditure, and can only rely on the strength of local finance to regulate regional economic development. Because of financial support, some local governments are keen to invest in large projects and build image projects, thus generating a large number of loans. However, once investment projects fail to generate negative returns, these loans will become non-performing loans. Huge loans will lead to heavy debts of local governments and their inability to repay them. They have been relying on loans to repay their debts, forming an endless cycle, and the lack of finance will lead to more poverty in the region. In order to make up for the shortage of finance, finance has played an excessive role and formed financial offside. At the same time, in the process of reform, rural credit cooperatives rely more on the administrative intervention of local governments to increase capital, and local governments occupy local financial institutions? Big head? , to a great extent, affected the independent development of financial institutions, and the phenomenon of financial offside appeared. The absence and offside of local finance coexist, while finance and finance cannot be balanced. On the one hand, it affects the dominant position of regional finance, on the other hand, it also seriously affects the sustainable development of local finance and adversely affects local economic and social development.
Second, local finance is absent. The development of regional finance is the guarantee of regional finance. With the support and development of regional governments, financial institutions will also provide financial services to the region and make up for the responsibility defects of regional finance. However, in some areas with relatively backward economic development, some financial institutions are only willing to absorb deposits for development and are unwilling to provide financial services, which has caused the phenomenon of financial vacancy. The lack of finance leads to the flow of funds from poor areas to developed areas. The financial supply in developed areas is obviously surplus, while the financial supply in poor areas is obviously insufficient. This kind of financial service is just the opposite phenomenon, which leads to the poverty-stricken areas becoming poorer and poorer and the developed areas becoming more and more developed. The most direct consequence is unbalanced regional development, which seriously affects social balance and stability. At the same time, the lack of regional finance often restricts the regional financial development, and the two restrict each other, which has a serious negative impact on the sustainable development of regional economy.
Significance of harmonious development of local finance and finance. First, it is conducive to supporting local economic and social development. The harmonious development of regional finance and finance can be understood as mutual assistance. When regional financial institutions are faced with reform and restructuring, they cannot do it alone. They can ask local governments to intervene, control the direction of reform by administrative means, and effectively solve the obstacles faced in the process of reform. Moreover, financial institutions can also rely on local government finance for financing and lending, and rely on the power of the government to promote their own stable development. On the other hand, under the background of industrial restructuring, local finance is responsible for its own profits and losses, and its income is greatly reduced, so it is difficult to bear the expenses needed for regional economic development for the time being. At this time, financial services are needed to help regional finance shoulder the heavy responsibility of development and alleviate regional financial difficulties. Because of the financial support, local finance will not be desperate because of huge debts. For example, local governments can use financial power to invest in targeted projects, use these development projects to obtain income, promote the rational and effective allocation and circulation of funds, and use comprehensive income to repay loans, that is, return the income to finance. What kind of fund? From finance or finance? It not only relieves financial pressure, improves financial capacity, but also promotes economic development, enhances economic strength, and stabilizes financial markets, which can be described as killing two birds with one stone.
Second, it is conducive to the construction of regional infrastructure. The infrastructure construction in a region determines the living standard and quality of residents in the region, and the finance and finance in a region determine the infrastructure construction. Similarly, under the background of industrial restructuring, the local financial capacity is limited, and the funds invested in local infrastructure construction are limited, which can not guarantee the quality of life of local residents and become a bottleneck restricting infrastructure construction. And if local finance supports the development of local finance, which in turn serves local finance and provides a large amount of funds for local finance to invest in local infrastructure construction, the face of the region will be completely new. Perfect infrastructure construction has spawned a number of emerging projects. These projects went public and benefited, and the funds returned to the financial industry, forming a virtuous circle of funds. Not only has the infrastructure construction in the region been repaired and improved, but local finance has also played its due role, and local finance has also benefited and developed in the construction process. Therefore, if a region's finance and finance can develop harmoniously, it will be a win-win result.
Third, it is conducive to building a healthy and stable financial system. With the development of the times, rural credit cooperatives, city commercial banks and state-owned banks all need to be reformed and reorganized to seek new development opportunities to cope with the ever-changing financial challenges. In the reform of these financial institutions, regional finance has played an irreplaceable role. It can be said that without the participation of regional finance, financial institutions themselves cannot complete qualitative change. The harmonious development of regional finance and finance is the premise and guarantee of building a healthy and stable financial system. Regional finance can lead by example, borrow and invest from financial institutions, and introduce a series of policies to encourage people to save or borrow, providing all available favorable conditions for the development of the financial industry and becoming an important supporting force in the financial system. At the same time, financial institutions should also grasp the good opportunities provided by regional finance, pay attention to guiding social funds to invest in financial development, and form a market structure in which development finance, policy finance, commercial finance and private finance coexist. Using regional centralized capital flows to develop and promote finance ensures a virtuous circle model and plays an important role in establishing a healthy and stable regional financial system.
Suggestions on the Harmonious Development of Local Finance and Finance
Promote the steady and rapid development of regional economy and strive to achieve regional financial balance. Under the background of industrial structure adjustment, the local fiscal revenue is greatly reduced, and the pressure on public services is correspondingly increased, which will lead to the imbalance of regional fiscal revenue and expenditure and seriously affect regional economic development. In order to balance fiscal revenue and expenditure, local governments can not only rely on the strength of local finance, but also strive to promote regional economic development. For example, some measures conducive to steady and rapid economic development have been promulgated. These measures will contribute to the steady and rapid development of regional economy, improve the level of economic development, and correspondingly increase the reserve of regional economic output value, thus enriching the regional fiscal treasury, reducing the debt pressure of regional finance and achieving the goal of fiscal balance.
Accelerate the transformation of local government functions and establish a binding debt mechanism. Under the socialist market economy, the relationship between the government and the market is more subtle. In principle, the government's macro-control of the market economy is greatly reduced compared with the planned economy period. However, in practice, the boundary between the government and the market is not very obvious. It can be said that the government has undertaken some things that it should not have undertaken, which has greatly increased the pressure on financial expenditure and is very unfavorable to the government and local economic development. Therefore, we should speed up the transformation of government functions, clarify the boundary between government and market, withdraw from the general competitive field in time and turn to the public service field, so that local governments can truly become? Service? The government should fundamentally put an end to the phenomenon of absence and offside in finance and finance, so that local finance and finance can perform their respective duties and develop harmoniously.
Under the tax-sharing system, local governments should not only ensure the investment in local economic construction, but also balance fiscal revenue and expenditure. It is an inevitable choice to borrow on a certain scale. Local governments can invest in some projects that are beneficial to regional development, which requires local governments to lend to financial institutions, which is also an important embodiment of mutual support between local finance and finance. However, it should be noted that establishing a binding government lending mechanism and allowing moderate government lending can promote regional economic and financial development. If the government borrows too much and does not invest a lot of loans to build large projects according to the local actual situation, these projects will fail to invest and fail to obtain corresponding benefits. In this way, the government will continue to lend because it is unable to repay, and the amount will become more and more endless, which is not conducive to financial and economic development. Establish a binding government lending mechanism, clarify the legal provisions on lending, act in strict accordance with the legal provisions, regulate government lending behavior with the mandatory binding force of the law, and control the amount of lending within a reasonable range. At the same time, establish an open and transparent government debt mechanism, improve the transparency of local finance, and let local government functions run in the sun.
Guarantee regional finance and finance? Back to your place? . The functions of regional finance and finance cross each other, and there are problems of absence and offside, which seriously affect the development of regional economy. Therefore, it is the best choice to perform their duties. First of all, the relationship between regional finance and finance needs to be sorted out and clarified. The government can properly regulate and intervene in financial development, and finance can also share some financial responsibilities and relieve financial pressure, but what about it? Degree? We must make it clear that we can't take over, that is, the government can't directly manage finance, and finance can't completely replace the government to exercise its functions. Secondly, local governments should put themselves in a correct position financially, and cannot regard themselves as special customers and ask for privileges. Financial institutions should not regard local governments as special customers, but should act in strict accordance with corresponding laws and regulations and conduct normal services and transactions. Thirdly, local governments should gradually focus on public services and regional infrastructure construction services, especially for regional? "Agriculture, rural areas and farmers" have increased their support for the development of small and medium-sized enterprises. Service government? This concept has actually been realized. Only by strictly following the procedures can finance and finance be truly achieved? Back to your place? , while performing their respective duties, complement each other and serve the regional economic development.
To annotate ...
① Dong Ning and Zheng Yutong:? Research on the Relationship between Local Finance and Finance in China? , Productivity Research, No.4, 20 1 1.
② Wang Li:? On the Harmonious Development of Local Finance and Development Finance? Hainan Finance,No. 10 in 2006.
Finance and Finance Model II: On the financial and financial integration under the new market economy By analyzing the current situation of China's market economy, we can know that although China's market economy has achieved satisfactory results, there are still some problems, which lead to unreasonable allocation of resources in the market economy, thus affecting the development of the market. In order to solve this problem, we must take corresponding control measures to ensure the stable development of the market economy. As we all know, when a country carries out economic regulation, it needs to control the relationship between national finance and finance first. Therefore, under the new market economy conditions, only by ensuring the harmony between finance and finance can we promote the stability and long-term development of the market economy. The reasonable integration of finance and finance can bring impetus to the development of market economy, adjust the relationship between market subjects well and rationally allocate market resources. To sum up, only by seriously studying the financial integration under the market economy can we better promote the stable development of our economy.
First, the importance of finance and finance under the new market economy
With the rapid development of China's economy, under the new market economy, on the one hand, in addition to the role of the market itself, we usually use the good relationship between finance and finance to regulate the development of the market economy. For example, the rapid development of market economy will lead to soaring prices and high turnover rate. In this case, we can slow down the development of market economy by scientifically adjusting finance and finance, so as to carry out macro-control of market economy. The specific measures are as follows: from the financial point of view, it is necessary to implement relevant fiscal strategies to reduce fiscal expenditure and increase national tax revenue; On the other hand, from the financial point of view, a more effective financial strategy can be adopted, that is, raising the deposit and loan interest rate of banks and reducing the credit scale. On the contrary, if our market economy develops slowly, we should do the above strategy in turn. From the above description, we can easily find that finance and finance play a very important role in the development of market economy in China.
Second, the reasons for restricting the role of finance and finance in the new market economy
1. Market supervision is lagging behind.
Under normal circumstances, when the Chinese government uses finance to regulate the market economy, the metropolis has a certain lag. In other words, due to the continuous development and changes of China's market economy, some potential problems are not easy to find, and will only be revealed when it reaches a certain stage. In this case, if our government still takes some control measures, it will pay a heavy price for its irrational behavior, and the consequences will be unimaginable. Although the development of the market economy itself has certain laws, the laws sometimes deviate, and doing things according to the laws will lead to work mistakes. Even in the United States, where the market economy is relatively developed, market supervision will lag behind. A typical example is the American financial crisis in 2008.
2. The fiscal policy formulated by the government is not in harmony with the financial policy.
Usually, the government will take scientific financial and monetary measures to regulate the normal development of the market economy. However, financial management methods and financial methods are essentially different. Therefore, when the government formulates relevant strategies, it often leads to the disharmony between fiscal and financial strategies. For example, in the financial crisis that broke out in 2008, the China government first proposed to increase government fiscal expenditure and allocate 4 trillion yuan to stimulate financial development, which really played a very significant role. However, a year later, the problem appeared, and financial measures alone could not adjust China's economic development well. Therefore, in 2009, the government launched a series of policies to reduce credit interest, and used the capital integration of banks to further promote economic recovery and development. Some interest rate cuts have been taken before, because the range is small and the effect of interest rate cuts is not ideal. In short, both foreign and domestic governments generally have the problem of fiscal and financial disharmony in the process of regulating the market economy.
Of course, in addition to some of the problems mentioned above, there are other problems in the government's use of fiscal and financial means to regulate the market economy. For example, the integration of financial departments and banks is slow, and the government emphasizes one aspect when formulating regulatory strategies. These problems will affect the reasonable integration of finance and finance.
Three. Fiscal and monetary policies to promote economic development
1. Change the concept of development and formulate clear guidelines.
In the early stage of economic development, China only attached importance to economic development, ignoring the people-oriented development concept. At present, the premise of promoting economic development is to start with fiscal and financial policies, change the economic development model, improve the economic structure, vigorously promote the resource-saving economic development strategy, and build a resource-saving and environment-friendly economic development society. In order to promote economic development, it is necessary to reasonably combine the objective needs of society with the government's fiscal and financial policies, which are embodied in: rationally using the national fiscal and financial policies, strengthening financial input, creating a good macro-environment for social and economic development, ensuring fair competition in the economic market, and thus better satisfying people's pursuit of material culture.
2. Constantly strengthen support for economic growth and constantly optimize and expand the financial foundation.
In order to obtain financial and financial support for economic development, we must first completely change the situation of relying solely on financial capital investment. Develop the basis of market mechanism and adopt various financial and financial means such as adjustment mechanism and guidance policy to promote economic growth. Adjusting the economic structure is mainly to realize the transformation of traditional economic industries into high-tech industries with scientific and technological content and high added value. Fiscal and monetary policies will gradually form competitive industries and vigorously support high-tech industries in China.
3. Fiscal and monetary policies should vigorously develop social undertakings.
The problem that has always existed in China's economic development is the imbalance of economic development, and it is difficult to solve the imbalance problem in a short time by adopting effective and reasonable fiscal and monetary policies. Therefore, the development of social undertakings needs the strong support of financial funds, but it is difficult for the government to invest a lot of money in a certain period of time. When supporting the development of social undertakings, finance should start with key points, such as preferential taxes and fees, financial subsidies, monetary policies, etc., and use these methods to promote the development of non-agricultural industries in China more effectively. We will continue to develop into urbanization, vigorously develop the employment market in China, and ensure the development of employability. Constantly adjust the structure of fiscal expenditure, strengthen financial support for various social undertakings, and better ensure the smooth development of social undertakings.
Fourth, measures to improve the efficiency of financial integration.
1. Carefully examine the development law of market economy, and put forward scientific financial integration methods on this basis.
Only by continuously and deeply studying the development law of market economy, finding out the problems existing in the development process of market economy in time, and proposing solutions through in-depth study of the problems, can we fundamentally complete the integration of finance and finance, promote the full play of fiscal and financial policies to promote market economy, further discover potential problems in the market, propose timely and accurate solutions, alleviate the lag of fiscal and financial regulation on the market, and lay a solid foundation for the government to formulate scientific fiscal and financial policies.
2. Scientifically adjust the relationship between finance and financial strategy, so that it can give full play to its role.
As we all know, when the government regulates the market economy, it first needs to carefully understand the development of the market economy, and then implement corresponding countermeasures according to the survey results. We can also implement different countermeasures according to different situations, of course, these need to combine finance and finance. In general, if the market economy develops too fast, the government should take countermeasures from both financial and financial aspects in order to better regulate the market economy. In the specific implementation process, it can be divided into different orders according to the situation to give full play to the integration of the two. Only in this way can we fundamentally implement financial integration and give full play to its role in the development of market economy.
Verb (abbreviation of verb) conclusion
Only when the government makes scientific financial planning and financial planning can it really promote the healthy and long-term development of the market economy. In addition, the combination of financial planning and financial planning can also play an important role in regulating the market economy. In view of a series of problems existing in the process of market economy regulation, we still need to seriously think about solutions. Seriously analyze the development law of market economy, put forward more advanced financial integration methods, scientifically standardize the relationship between financial plan and financial plan, make them give full play to the integration effect, and promote the long-term stable development of market economy.
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