River basin cities are areas with remarkable conflicts between the human activity and the ecological environment. They are also important targets for policy implementation of sustainable and high-quality development (HD) in various countries around the world. This article exploits the panel data of 99 cities located in the Yellow River Basin (YRB) from 2006 to 2019 to empirically analyze the spatial effect of financial growth on HD. Spatial weights participated econometric models are utilized to analyze this spatial effect. Empirical results reveal that: (1) the HD in the YRB shows a strong positive spatial autocorrelation. (2) Financial growth exerts an N-shaped curve effect on the HD from a long-term perspective. When this influence spills out to the surroundings, it exhibits an inverted U-shaped characteristic. (3) Green innovation can be an important intermediary factor in the influence of financial growth on HD. (4) The influence of financial growth on HD appears stronger in regions with higher economic levels, where N-shaped effects can be transmitted to the surrounding regions. However, the backward economic development in low-economy regions prevents the spatial spillover of N-shaped effects. This study can be instrumental for countries to formulate financial policies that aim to promote HD in river basin cities.