Abstract:In recent years, the economy in southwest areas develops rapidly, the position of financial industry in economic development rises day by day. Financial development in southwest China has been analyzed in aspects of scale of social financing, the proportion of financial added value to GDP, financial market development. The evaluation index system of financial development has been established from three-dimension such as financial scale, financial structure and financial efficiency. Comparative analysis of the level of financial development of the five provinces and one municipality in southwest China has been achieved with factor analysis method on the cross section data during 2007-2015. The results reveal that the level of financial development in southwest China experiences the change from relative importance of financial scale to relative importance of financial structure and financial efficiency. The different level of financial development in the five provinces and one municipality in southwest China changes from the initial extensive-type growth by emphasizing scale expansion to the intensive-type growth by emphasizing efficiency promotion. The financial development in southwest China is not balanced and has obvious difference, and financial development level is restricted by economic basis and condition. The southwest China should set up the coordinated development mechanism between finance and economy, emphasize the promotion of financial efficiency, and intensify the stability of regional financial development.