Study on the influencing factors and improving countermeasures of regional financial service function in Hunan Province ——Take corporate loans as an example

The demand for financial services has been increasing with China rapid economic development in recent years. Among diverse financial services, credit is the financial service which has linked closely with daily economic activities of individuals and nonfinancial firms. In fact, in the domestic financial system, indirect financing is the leading way, the change in the total amount of credit is of great significance to both the microeconomic and the macroeconomic. This paper focuses on the regional financial services within Hunan Province, using the volume of credit delivery to non-financial firms and government institutions in Hunan as a start point, and selects the nonfinancial firms in Hunan Province from 2016 to 2020 as the research object, and analyses the influencing factors for the amount of non-financial corporate borrowing under the function of regional financial services in Hunan. The empirical results show that the amount of loans from non-financial enterprises are positively correlated with the deposits of non-financial enterprises and residents and government organizations and are negatively correlated with the reduction rate of loss-making enterprises and CPI. Finally, according to the results, this paper concluded countermeasures for Hunan Province to effectively improve the amount of credit and promote economic development.