Abstract

 

In recent 20 years, the financial expansion in China is very remarkable, and many local financial institutions, such as the city commercial banks, county banks and so on, been established. In Chinese type regionally decentralized authoritarian system, the intervention of local government on the financial expansion and local financial institutions is an important perspective for us to understanding the pattern of financial development in China. In this paper, we mainly review the follow literatures: promotion pournament around economic growth, the insufficient of local government financial resources due to the fiscal decentralization reform, and relationship between the financial intervention of local government and financial regulation of central government.

 

Key words: Financial Expansion; Local Finance; Political Intervention; Financial Regulation