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China's Tibetan Region, located in the highest plateau , includes the Tibetan Auton-omous Region , ten Tibetan autonomous prefec-tures, and two Tibetan autonomous counties in Qinhai , Sichuan , Yunnan and Gansu .The region is economically backward and has substantially re-lied on central Chinese government's fiscal transfer payments and aid from other provinces in China . As a result, the financial sector in the region is un-derdeveloped and is not able to play an active role in supporting the region's leaping economic devel-opment .It is necessary to analyze the current fi-nancial system in the Tibetan region , to find out where the problems lie and how to modify the fi-nancial system .