Financial development, openness in financial services trade and economic growth

Rabia Khatun,Jagadish Prasad Bist 경희대학교 글로벌 통상·금융연구원 2019 International Trade, Politics and Development Vol.3 No.2

The purpose of this paper is to examine the relationship between financial development, openness in financial services trade and economic growth in BRICS countries for the period 1990–2012.An index for financial development has been constructed using principal component analysis technique by including banking sector development, stock market development, bond market development and insurance sector development. For the robustness of the result, the long-run cointegrating relationship amongst the variables has been analyzed.Overall financial development has a positive and significant impact on economic growth. To take the full advantage of openness in financial services trade, countries need to put more emphasis on the development of their stock markets, bond markets and the insurance sector. The result shows that openness in financial services trade has a positive impact on economic growth when the stock market, bond market and insurance sector are included in the system.The policy implication of the findings is that policymakers should focus more on developing all four areas of finance to get the full benefit of the financial system on the process of economic growth.The authors have constructed the better indicators of financial development in the case of BRICS economies. Most of the studies in BRICS economies have measured the development of the financial sector as either banking sector development or stock market development. However, the present study includes all four areas of finance (banking sector development, stock market development, insurance sector development and bond market development) into account.

금융발전이 경제안정에 미치는 효과

강경훈 ( Kyeong-hoon Kang ),배영수 ( Young-soo Bae ) 한국금융연구원 2018 금융연구 Vol.32 No.3

금융발전은 경제안정에 긍정적인 효과와 부정적인 효과를 모두 미칠 수 있으며 금융발전-경제변동성 간의 관계에 대한 실증분석 결과 역시 뚜렷한 결론을 내리기가 어렵거나 U자형의 비선형관계가 나타나기도 한다. 이 연구는 금융발전과 경제안정의 관계에 대한 선행연구들을 광범위하게 검토하는 한편 한국의 금융발전과 경제안정 간 관계에 대해 분석한다. 한국의 시계열자료를 바탕으로 분석한 결과 한국에서는 금융발전이 경제안정을 가져온다는 결과를 얻었다. U자형과 같은 비선형 관계는 나타나지 않았으며 1997년 외환위기 이후 금융발전이 경제안정을 제고하는 효과가 강해졌음을 발견하였다. 이러한 분석 결과에 따르면 한국의 경우 앞으로도 계속해서 금융발전을 적극 도모할 필요가 있음을 알 수 있다. 그러나 2007~2009 글로벌 금융위기에서 알 수 있듯이 과도한 금융발전 또는 금융과잉의 경우 경제변동성을 확대하거나 금융위기 가능성을 높일 수도 있음에 유의할 필요가 있다. There are various paths through which financial deepening affect economic stability. Firstly, a developed financial system can enhance economic stability by providing tools of investment diversification, risk management and insurance functions to firms, households and the government. On the other hand, as the financial sector grows, the volatility of the economy may increase as the leverage of the overall economy grows and the risk seeking of economic agents expands. Theoretically, these two opposite causal relations between financial development and economic stability are possible. In addition, empirical test results are also difficult to draw clear conclusions about the relationhip. According to recent empirical studies such as Sahay et al. (2015), there can be a nonlinear relationship between financial development and economic volatility. This paper summarizes the related previous literature as the first step to study the relationship. Next, based on the Korean time series data, empirical tests are made on the relationship between financial development and economic stability in Korea. The methodology of the empirical analysis is similar to Cermeno et al. (2016) and Darrat et al. (2005). Variables representing financial development are the ratios of M2/GDP, Liquidity Aggregates of Financial Institutions/GDP, Liquidity Aggregates/ GDP, and Total Loans/GDP. These variables do not reflect the qualitative aspects of financial development. They reflect only the quantitative aspects. It is not easy, however, to measure the qualitative levels of financial development for a single country. It is also difficult to track and compare the changes in qualitative aspects of financial development over time, and thus this paper does not include qualitative variables. The variable for the economic stability is the conditional variance of the real GDP growth rate. As the first empirical test to examine the effect of financial development on economic volatility in Korea, we add variables for financial development to a typical ARMA(p1,q1)-GARCH(p2,q2) model. The test results show financial development has a positive effect on economic stability. In general, as the economy grows and its size increases, the growth rate declines and its volatility declines. In this case, so the decline in conditional variance may be due to the growth of the economy itself, not to the financial development. In order to check this problem, we estimate a model that includes the economic growth rate as an exogenous variable. As a result, it is not too much to conclude that even if the economic growth rate is controlled, financial development generally has positive effects on economic stability. Moreover, in order to test the non-linearity of the U-shaped relationship between financial development and economic stability, we perform a regression analysis which includes squares of the variables for financial development. The test results show that the coefficients of the squares of the variables for financial development are not statistically significant. Therefore, there is no reason to believe that the Korean financial sector has developed too much to hamper economic stability. By the way, it is necessary to examine whether there has been a structural change in the relationship between financial development and economic stability during the 1997 financial crisis and the 2007-2009 global financial crisis. We add the dummy variables for the 1997 crisis and the 2007-2009 crisis period. The results suggest that financial development has a positive effect on economic stability for the whole period, mainly because of the effect in the period after the 1997 crisis. However, unlike the 1997 crisis, the dummy variables corresponding to the period after the 2007-2009 financial crisis do not show statistically significant results. The implication of the empirical analyses is that in the case of Korea, it is necessary to continuously pursue financial development in the future. However, as can be seen from the 2007-2009 global financial crisis, too excessive financial development may increase economic volatility or the possibility of a financial crisis. Considering these points, it is necessary to make efforts to maintain economic stability and lower the possibility of a financial crisis, while constantly promoting financial development.

중국농업발전은행(中國農業發展銀行)의 현황 및 발전방향에 관한 연구

서승걸 ( Song Jie Xu ),박송춘 ( Song Choon Park ) 아시아.유럽미래학회 2010 유라시아연구 Vol.7 No.4

1990년 이후 세계적인 글로벌화 추세는 1970년대 시작된 중국의 개혁개방정책을 가속화하였고, 중국의 금융산업도 비약적인 성장을 거듭하여 왔다. 중국 금융정책의 발전은 정책은행의 변화를 가져 왔으며 이러한 변화는 결과적으로 국가의 경제발전을 위해 정책지원금을 조달하고 있는 정책은행 들을 새롭게 개편하였다. 하지만 농촌금융은 이러한 변화에 적응하지 못하고 있는데 그러한 원인은 농가와 향진기업 그리고 농촌의 개인기업 등 다양한 부문에서 거대한 자금수요가 있음에도 불구하고 농업과 관련된 정책은행은 이러한 수요를 충족시키지 못하고 있기 때문이다. 현재 중국은 금융기관의 독점화 추세에 따라 금융서비스가 단일화되어 농촌을 지원하는 금융기관이 부족해 농가의 자금수요를 일반 상업은행들에게 의존하는 현상이 발생하고 있다. 또한 중국농업발전은행과 같은 제도금융기관들이 위험을 줄이기 위해 농가대출에 대한 자격심사기준 및 요구조건이 매우 까다로워져 농업기업들은 제도금융기관에서 대출을 받기 어려운 실정이다. 그 결과 중국 정책은행의 금융서 비스 기능이 제대로 발휘되지 못하고 있고, 일반상업은행 역시 정부의 규제로 발전에 많은 제약을 받고있다. 본 논문에서는 중국 정책은행 중의 하나인 중국농업발전은행에 관한 현 상황과 문제점을 분석하여 향후 발전방향에 대해 연구하고자 한다. 중국농업발전은행은 농촌금융 개혁 과정에서 중국농업은행이 실시하고 있던 정책성 대출지원 업무를 인수하여 농촌정책금융과 상업금융을 분리하기 위한 수단으로 설립된 것이었다. 중국농업발전은행은 농업 생산농가와는 직접적인 업무관계는 발생하지 않고 다만 정부가 규정한 정책금융 업무, 정부재정자금할당 및 농업지원 자금배정을 주 업무로 하고 있다. 현재는 주로 국가의 식량과 면화, 식용유 등 중요 농산물의 저장, 농산품의 수매, 농업개발 등에 정책성 대출업무를 담당하고 있다. 또한 중국농업발전은행은 정부 재정에서 농업을 지원하기 위한 전용 대출자금의 사용과 사후 관리를 담당하며 농업인의 국민 경제적 지위 향상과 농촌경제의 육성을 주요 임무로 삼고 있다. 하지만 주목해야 할 것은 농촌의 경제 주체들이 제도금융기관보다 비 제도금융기관을 더 많이 활용하고 있다는 사실이다. 이는 정책은행으로서 중국농업발전은행이 아직도 그 역할이 미비하다는 것을 입증하는 결과이기도 하다. 중국농업발전은행의 업무들이 효과적으로 수행되지 못한 중국내부의 중요한 원인은 도시의 산업화에 따른 농촌인구의 유출 등으로 인해 자금의 이동이 농촌에서 도시로 집중되는 전형적인 산업화의 형태에 기인한다고 할 수 있을 것이다. 이러한 문제점들을 개선하기 위하여 2009년에 들어서 중국농업 및 농촌의 신속한 발전을 위하여 중국농업발전은행의 업무를 재조정하게 되었다. 2009년 2월 6일 발표된 중국농업발전은행의 주요업무는 신용대출업무, 융자업무, 결제업무, 국제결제업무로 분류된다. 본 논문에서는 서술한 내용을 토대로 SWOT분석방법과 그리고 외국농업현황의 비교분석을 토대로 중국농업발전은행의 업무에 관한 내용을 분석하였다. 그 결과 현재 중국농업발전은행의 문제점으로 불완전한 농지 법률문제, 농촌의 낮은 신용 문제, 겸업화의 확대문제 등 중국농업발전은행의 발전에 큰 영향을 줄 수 있는 사항들을 발견하였다. 그리고 본 논문에서는 한국의 특수은행인 농협의 성격 및 업무 등을 비교하였다. 한국농협과의 비교분석을 통하여 중국농업발전은행은 농업 및 농촌에 대한 정책자금의 지원확대가 필요하다는 것과 건전한 법률시스템을 정착시켜야 한다는 것, 그리고 농촌 정책자금의 관리방법 개선과 경영진의 교체 등의 발전방향을 제시하였다. 다음으로 중국농업발전은행의 발전방안을 도출하기 위하여 선진국의 정책 은행과 비교 분석하였다. 그결과 농업에 관한 정책성 농업금융기관은 국가마다 그 나라의 특성에 맞는 조직과 운영방식을 지니고 있었다는 것을 알게 되었다. 따라서 앞으로 중국농업발전은행은 자신의 단점을 극복하기 위하여 농업과 농촌에 대한 정책자금의 지원확대, 농촌보험제도와 담보제도에 대한 개선의 가속화, 교육지원활동, 건전한 법률시스템의 정착과 정보공개화 등 보다 구체적인 발전방안이 제시된다면 새롭게 변화하는 세계농업금융에 보조를 맞추어 가는 농업금융이 될 것으로 판단된다. 그리고 자본주의적인 요소가 강하지만 농업에 관한 중국 정부의 정책이 보다 구체화될 경우, 중국농업발전은행의 업무를 완전히 개방화시켜 정책은행에서 상업은행으로의 전환도 고려해보는 것이 타당하다고 생각한다. 하지만 현재 중국농업경제나 중국농업발전은행의 현황을 살펴볼 경우, 현재로서는 중국실정에 맞는 운영원칙에 충실해야 할 것으로 판단된다. 왜냐하면 현재 중국농업의 미비한 발전과 중국농업발전은행의 자율성이 약해 정부의 지원을 받고 있는 금융기관이기 때문이다. 그럼에도 불구하고 지금의 중국농업경제나 중국농업발전은행의 현황에 따라 근본적 목적인 이념적 측면과 신용 사업적 측면 모두를 충족시켜야 하는 상황이라면, 이 양자 간의 목적을 상호 충돌시키기 보다는 유기적으로 연계시켜 유지해 나아가는 노력이 필요할 것이다. 즉 확고한 이념적 토대위에 경영적 측면이 조화롭게 연계되어 중국농업발전은 행이 운영될 때 본연의 정체성이 확립될 수 있으며, 더불어 중국농업발전은행의 발전도 더욱 가속화될 수 있을 것이다. The worldwide trend of globalization since 1990 has accelerated Chinese policies for reforms and opening, which started in the 1970s, and resulted in the rapid growth of the financial industry in China. The development of financial policies in China has brought changes to policy related banks, restructuring such banks that supply political subsidies for national economic development. However, rural finance failed to adjust itself to the restructuring. Specifically, despite demand for large amounts of funds in various areas including farmhouses, local companies, and private companies in rural areas, policy related banks are unable to meet the demand and this has become a problem in the utilization of policy based loans. Currently in China, financial institutions are being monopolized and, as a result, financial services are being unified. In this situation, the number of financial institutions supporting urban areas is small, and farmhouses have to rely on ordinary commercial banks for loans. In addition, institutional financial agencies such as Chinese Agriculture Development Bank are applying strict criteria and requirements for loans to farmhouses in order to reduce risk, and this makes it hard for agricultural companies to get loans from institutional financial agencies. As a consequence, policy related banks in China cannot perform their functions of financial service adequately, and even the development of ordinary commercial banks is hampered heavily by the government’s regulations. These problems have been evidenced by various studies. In order to overcome shortcomings of these studies and approach more detailed problems, this study purposed to examine the current state of Chinese Agriculture Development Bank, one of policy related banks in China, and to identify its problems and suggest solutions. Chinese Agriculture Development Bank was founded as a part of rural financial reform in order to take over policy related loans from Chinese Agricultural Bank and to separate agricultural loans from commercial loans. Agriculture Development Bank does not deal directly with individual farmhouses, but its main mis-sions are policy-related finance, the allocation of government’s funds, and the distribution of funds for supporting the agricultural industry. At present, the bank is in charge of policy related loans related to the reserve of important agricultural products including provisions, cotton and vegetable oil for the government, the purchase of crops, agricultural development, etc. In addition, it operates and manages loans from the government’s funds for supporting agriculture, and promotes the enhanced status of farmers in national economy and the growth of rural economy. What should be noted, however, is the fact that economic actors in rural areas use non institutional financial agencies more than institutional ones. This proves that the role of Agriculture Development Bank as a policy related bank is not significant yet. The reason for the ineffective operation of Agriculture Development Bank can be found in the domestic situation of China, namely, urban industrialization that induces the outflow of rural population and the concentration of funds into cities. In order to solve these problems, the works of Chinese Agriculture Development Bank is being adjusted in 2009 in a way of promoting the rapid growth of Chinese agriculture and rural areas. According to the announcement on February 6, 2009, the major duties of Chinese Agriculture Development Bank are classified into credit loan, financing, settlement, and international settlement. This study analyzed the works of Chinese Agriculture Development Bank using the SWOT method. In the results, we found a number of problems that may have a considerable impact on the development of Agriculture Development Bank such as imperfect laws on farmlands, rural communities’ low credit, and the expansion of farming as a side business. This study compared Agriculture Development Bank with policy-related banks in developed countries in order to derive solutions for the problems. Policy related agricultural financial institutions have organization and operation suitable for the country’s characteristic. In this study, we compared using the characteristics and works of Korean National Agricultural Cooperative Federation, which is one of special banks. Based on the comparison, we suggested a number of improvement plans including the expansion of policy-related financial supports to agriculture and farm villages, and settlement of a sound legal system, improvement in the management of rural policy related funds, and improvement in the boards of directors. If Chinese Agriculture Development Bank overcomes its shortcomings through expanding policy-related financial supports to agriculture and farm villages, accelerating the establishment of the rural insurance system and the security system, activating educational supports, settling a sound legal system, opening information, etc. it will become an agricultural financial institution that keeps pace with the world’s agricultural finance. If the Chinese central bank’s policies on agricultural are materialized, it may be desirable to commercialize Agriculture Development Bank by opening its works fully though it may be strongly capitalistic. Current Chinese Agriculture Development Bank should be faithful with its traditional principles of operation. Chinese Agriculture Development Bank is a financial institution with low autonomy supported by the government. Nevertheless, if Chinese Agriculture Development Bank has to achieve its fundamental goals in both the ideological aspect and credit business aspect, it should make efforts to coordinate the two aspects harmoniously rather than separating them from each other. That is, when Chinese Agriculture Development Bank is operated through harmony between its firm ideological base and its business aspect, its identity will be established and its future development will be attainable.

Financial Integration, Economic Growth and Financial Development : Evidence from the Philippines

Harvey V. Baldovino,Amelia L. Bello,Nikki Ann C. Bermudez 한국무역연구원 2011 The International Academy of Global Business and T Vol.7 No.1

Does a country benefit from increased financial integration? This study investigated whether the increasing degree of international (IFI) and regional financial integration (RFI) of the Philippines benefit its economy and the financial sector. The levels of stocks and flows of capital were used as IFI indicators, while interest rate convergence measures were used to measure RFI among Asia Pacific Economic Cooperation (APEC) member countries. The Ordinary Least Squares method was used to relate IFI and RFI indicators with the degree of Philippine economic growth and financial development. Philippine economic growth was found to be positively influenced by the stock of capital flow and inflow, but is negatively affected by the convergence of deposit and lending market rates of APEC countries. On the money market convergence rates and the stock of capital flow were found to have negative impacts on the development of financial markets. However, it was also found that financial development is enhanced by annual flows of capital and the convergence of lending and deposit market rates among APEC countries. These mixed results, along with a number of insignificant coefficients render the study inconclusive with regards to the relationship of financial integration, growth and financial development in the Philippine context.

Does Financial Integration Matter for Financial Development? Evidence from the East Asian and Pacific Region

Farhad Taghizadeh-Hesary,Nguyet Thi Minh Phi,Hanh Hoang Thi Hong,Vu Tuan Chu 세종대학교 경제통합연구소 2019 Journal of Economic Integration Vol.34 No.4

This paper assesses the impact of financial integration on financial development and establishes thresholds for materializing gains of financial advances from financial globalization using a sample of 34 countries from the East Asian and Pacific region. Following the approaches of Kose et al. (2011) and Asongu and De Moor (2016), we test non-linearity within the financial openness and financial development nexus through semi-parametric ordinary least-squares regression, and then, we develop threshold dynamics models. According to our findings, the effect of financial integration on financial development significantly changes across different financial inflows. When using external debt as a proxy for financial openness, there exists a robust significant inverted U-shaped relationship between financial integration and financial development. The empirical findings also suggest that the financial integration-development nexus is contingent on the level of trade openness, national income, and institutional quality. The results are robust to different measures of financial development and integration, the inclusion of other determinants of financial development, and considerations of endogeneity.

한국의 금융발전과 경제성장의 관계

조갑제 연세대학교(미래캠퍼스) 빈곤문제국제개발연구원 2012 地域發展硏究 Vol.21 No.2

This paper attempts to find the nexus between financial development and economic growth in Korea, focusing on two issues: the causality between financial development and economic growth and the measurement of financial development. It was found that financial development Granger caused economic growth, but financial depth did not Granger cause economic growth. Conversely, economic growth did not Granger cause financial development or financial depth. The cointegration estimates show that economic growth in Korea has been positively related with financial development, while economic growth has been negatively related with financial depth, which is statistically significant. The impulse response function and variance decomposition confirm that financial development and investment have been the main driver of economic growth. Thus, this study could support the argument that financial development, not financial depth, has had positive effects on economic growth in Korea.

Economic Globalization and Financial Development: Empirical Evidence from India and Sri Lanka

Chinmaya BEHERA 한국유통과학회 2021 The Journal of Asian Finance, Economics and Busine Vol.8 No.5

The paper examines the nexus between economic globalization, financial development and institutional reform in India and Sri Lanka during the period 1990–2017. Using the panel ARDL method, the study finds the long-run relationship between financial development, economic globalization, and institutional reforms. From the short-run equation, the study finds the negative and statistically significant impact of economic globalization on financial development in India whereas Sri Lanka has a positive impact of institutional quality on financial development. Then, the study finds no short-run causality between financial development, economic globalization and institutional reforms. However, the study finds bi-direction strong causality between economic globalization and financial development. Further, the study finds uni-directional strong causality from institutional quality to financial development and economic globalization. Moreover, there is an existence of long-run causality between financial development, economic globalization and institutional quality. For the robustness of the results, the study considers the financial market as a proxy for financial development. Then, the study applies the panel ARDL test and find the consistency in the results. The policymakers in India and Sri Lanka should focus on institutional reforms so that it can reap the benefit of economic globalization. In turn, the quality of institutional reforms can thereby lead to financial development.

한국의 금융발전과 경제성장, 소득불평등 간의 장·단기 비선형 관계 연구

김종구 국제지역학회 2024 국제지역연구 Vol.28 No.1

This study tests the long-run and short-run asymmetry hypotheses on the effects of financial development and economic growth on income inequality and vice versa. We find long-run and short-run asymmetric relationships for the income disparity hypothesis on the effects of financial development and economic growth on income disparity in Korea, the growth hypothesis on the effects of financial development and income disparity on economic growth, and the financial hypothesis on the effects of economic growth and income disparity on financial development. We also find that the asymmetric effects of financial development and economic growth in Korea are such that when financial development grows, income disparity is reduced, but when financial development recedes, income disparity is larger. Rising economic growth reduces income inequality, but falling economic growth contributes more to reducing income inequality than rising economic growth. On the other hand, we find that increasing income inequality reduces economic growth, and reducing income inequality leads to a larger decline in economic growth. Finally, increasing income inequality has a negative impact on financial development, as it hinders financial development more when the economy is in recession. These empirical findings show that simple linear and nonlinear modeling leads to modeling errors and can lead to policy failures if policies are implemented by considering only the impact of financial development and economic growth on income inequality.

The Research on Fiscal and Financial Policy to Coordinate Support Development of Low Carbon Economy- A Case Study of Heilongjiang Province of China

Rong Hongxia 보안공학연구지원센터 2016 International Journal of u- and e- Service, Scienc Vol.9 No.12

Based on the commentary of literature, this paper discusses the problem of low-carbon economic development. On account of complete points of fiscal and financial policy to coordinate support low-carbon economic development, utilizing the model of coordination degree, construct and evaluate coordinate development degree index system of fiscal and financial policy in Heilongjiang Province of China. The results show that the two coordinated development still encounters a series of major challenges, it is difficult for the system evolution in the direction of coordinated development. To realize the harmonious development for promoting the development of low carbon economy possesses important practical significance. Proposed market gradually plays an important part in policy support. Simultaneously, accompanied increasing financial investment, to give full play to support and guide the direction of financial policy to low-carbon economy development, therefore, propose the idea that promote fiscal and financial policy to support low carbon economy coordinately.

미국의 지역 기반 관계금융시스템

김은경 ( Eun Kyung Kim ) 한국질서경제학회 2018 질서경제저널 Vol.21 No.1

한국에서는 1990년대 중반 이후 지방분권이 확대되고 경제 규모가 커지면서 지역경제의 중요성이 대두되었다. 독일이나 일본처럼 분권이 확대된 국가일수록 지역에 기반한 금융 시스템이 발전되어 있다. 지역금융시스템은 지역경제 활성화 및 지역정책과 긴밀한 관계를 가진다. 그러나 한국은 정권별 다양한 지역정책의 발표에도 불구하고 실질적으로 이를 뒷받침 할 수 있는 금융시스템에 대해서는 정부가 관심을 가지지 않았다. 한국의 무늬뿐인 지방분권의 수준은 중앙 중심의 금융시스템으로 그대로 나타나고 있다. 분권과 자치에 기반한 지역경제 활성화와 자율적이고 독립적인 지역정책을 추진하기 위해서는 지역 기반 금융시스템이 중요하다. 지방재정이 열악할 뿐만 아니라 재정지출 중심의 지역정책은 조세수입의 한계로 인해 지속적인 정책 추진을 어렵게 만들고 지금과 같이 국세 중심의 시스템에서는 지자체의 재원 조달도 쉽지 않기 때문이다. 지방자치의 강화와 지속적인 지역발전을 위해서는 지역의 내생적·장기적 발전을 위한 지역 고유의 금융생태계를 구축해야 한다. 금융사각지대인 지역의 중소기업, 영세자영업자, 사회적 취약계층 등을 지원하고 지역발전과 연계되어 사회적 책임을 실현하는 지역 기반 금융생태계가 중요하다. 지역 기반 관계금융의 구축을 위해 금융시스템의 2원화 및 차별화된 지역금융시스템을 구축하여 전국금융과 지역금융의 분업시스템이 필요하다. 전국금융기관은 대도시를 핵심 영업지역으로 하면서 전국과 세계시장을 대상으로 영업하고, 지역금융기관은 중소도시 및 농어촌 등의 지역에서 주로 영업을 하는 것이 적절하다. 특히 지역균형발전과 지역경제의 지속적인 발전을 위해서는 지역의 특성에 맞는 차별화된 지역금융시스템이 필요하다. 개방화되고 글로벌화된 금융시장 환경에서 지역 밀착형 금융기관은 지방의 영세기업 및 자영업자들과 금융취약계층에 대한 자금을 제공하고 계층간 양극화를 해소하는 것에 기여할 수 있다. 본 연구의 목적은 지역경제의 지속적인 발전과 사회적 통합을 지원하는 지역 기반 관계금융시스템의 구축을 위해 미국의 사례를 분석하고 한국의 정책방향을 도출하는 것이다. Since the mid-1990s, the importance of the regional economy has grown because of the decentralization. The decentralized countries such as Germany and Japan, have developed the region-based financial systems. The regional financial system has a close relationship with the regional economic activation and regional policy. However, despite the various regional policies, the Korean government was not interested in the financial system that could support regional development. A region-based financial system is important to promote local economic development based on decentralization and local autonomy, and to promote autonomous and independent regional policies. In addition, regional policies based on fiscal expenditures are difficult to sustain regional economic growth due to limitations of tax revenue. Therefore, a region-based financial system should be established to strengthen regional autonomy and sustain long-term economic development. It is important to support SMEs, self-employed persons, and vulnerable groups and to realize social responsibility in the region. In order to build region-based relationship banking in Korea, it is necessary to establish a differentiated regional financial system, and to form a system of division of role between national wide finance and regional finance. In particular, regional balanced development and continuous development of the regional economy require differentiated regional financial systems that are tailored to the local characteristics. In a liberalized and globalized financial market environment, region-based financial institutions can contribute to the financing of local vulnerable groups and to eliminate the economic polarization. The purpose of this study is to analyze the case of the United States and to derive the policy direction of Korea in order to build a region-based relationship banking system that supports the continuous development of regional and local economy and social integration. This study suggests the following policy directions. First, it is necessary to establish a region-based relationship banking centered on cooperatives such as credit unions, MG community credit cooperatives, Mutual Banking etc.. In addition, the financial supervision system centered on the central government should be reorganized in line with the expansion of decentralization, so that the supervisory authority over the cooperative financial institution, which has a strong character of regional financial institutions, will be transferred from the central government to regional or local governments. Second, a policy that takes into account the specificity of local financial institutions is necessary to establish region-based relationship banking. It is important to expand the guarantees of the central government or local governments, if necessary, for local financial institutions to develop and activate local financial products for SMEs, small businesses and vulnerable groups. In addition, local financial institutions can enjoy favorable interest rates for local-based enterprises and stable loans to local residents with autonomy to develop and operate products flexibly according to the characteristics of the local economy. Third, the division of role and cooperation between regional branches of the national wide financial institutions and regional financial institutions should be established. It is also necessary for the national wide banks to organize their functions and roles so that their savings banks can become a regional financial institution in order to contribute to the formation of region-based relationship banking. Fourth, to build region-based relationship banking, local financial institutions should enhance their ability to provide consulting services. In order to strengthen region-based relationship banking, non-financial support such as business or management consultation is required. Fifth, it is necessary to rationalize the central government’s regulation on the local financial system. The central government should create a system for protecting and nurturing regional finance like the United States, in order to revitalize regional economy based on regional characteristics and promote balanced regional development. Sixth, the regional financial institutions need to innovate themselves and reform their activities.