Advances in Economics, Management and Political Sciences
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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 65 , 28 December 2023
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Exploring the Relationship Between Financial Institutions and Economic Growth from A Profit Maximization Perspective
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Abstract
Financial institutions, as the primary entities within the business sector, strive to achieve profitability and long-term expansion as their core objectives. Examining the reciprocal association between the advancement of financial institutions and economic growth through the lens of profit maximization holds considerable merit in enhancing the oversight of financial institutions. This paper examines the reciprocal relationship between financial institutions and local economic development from the perspective of profit maximization theory. It investigates the connection between economic growth and the profit acquisition activities of financial institutions, aiming to contribute to the advancement of local economic development. From the standpoint of profit maximization, the operations of financial institutions contribute to augmenting the momentum of economic progress. However, it is important to note that the unregulated expansion of financial institutions can also heighten the vulnerability of economic development, with potential consequences for excessive profit-seeking. Hence, with regards to the objective of maximizing profits, it is imperative for local governments to effectively oversee and manage financial institutions, establish a comprehensive market management framework, facilitate the well-regulated functioning of financial institutions, and foster the advancement of the economy towards high-quality development.
Keywords
financial institutions, Market system, Risk management, Economic development
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-239-8
- ISBN (Online)
- 978-1-83558-240-4
- Published Date
- 28 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/65/20231607
- Copyright
- 28 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited