In　this　paper,　the　panel　smooth　transition　regression　model　was　used　to　analyze　the　relationship　between　financial　development　and　economic　growth　empirically.　The　paper　mainly　studied　the　effects　of　proportion　of　total　loans　of　regional　financial　institutions　in　GDP　on　the　output　elasticity　of　capital,　labor　output　elasticity　and　returns　of　scale.　The　empirical　results　show　the　level　of　financial　development　has　a　nonlinear　diminishing　relationship　with　the　capital　output　elasticity,　and　has　a　nonlinear　increasing　relationship　with　labor　output　elasticity　and　returns　of　scale.