“…4 In particular, spatially centralized financial administration systems and state banking systems may induce spatially concentrated financial intermediation and might have the effect of spatial inefficiency of funding allocation, uneven wealth accumulation, and regional inequality (MARTIN, 1999;MARTIN and MINNS, 1995;MYRDAL, 1957). 5 This spatial inequality could be very substantial because the biased funding-circulation cycle may have a multiplying effect on inequality (MOORE et al, 1985). 6 In China, financial intermediation, as a development policy instrument to finance the state's projects, is greatly dominated by the central government's own banking system (INTERNATIONAL FINANCE CORPOR-ATION (IFC), 2000).…”