Research On China's Regulation Of Non-formal Financial

Non-formal finance in China's increasingly large scale, In recent years,in economic development is becoming increasingly important, thus triggering the theorists and practitioners of their attention. Non-formal financial for China's economic growth and social welfare has created an enormous contribution to the increase, they also continue to place non-formal financial events of major crimes, social and economic security and stability have an enormous threat, as no special adjustment of non-formal financial laws and regulations, so in practice there is inevitably a series of problems, can easily lead to civil and economic disputes. Improve the relevant legal system has become an informal financial health development, and maintain good financial order, the biggest problem, for the prevention of financial risks and stabilize the financial order of consideration, in the context of this reality, carefully study the problem of non-formal financial regulation becomes very important and urgent.First, the paper based on the theoretical study of China's informal financial and regulatory status quo analysis.the paper selected papers of the United States, Japan, Bangladesh and Taiwan were regulatory practice and learn from experience. Clear non-formal, including a private direct financial lending, RCAs, non-governmental funds, private banks, underground paper market, silver, silver back, and pawn, etc., because of the non-formal lack of financial laws and regulations, resulting in non-formal financial many shortcomings, including poor standards, disrupt the financial order, threatening social stability, expand social gaps and so on. China's existing legal system on a very informal financial regulation in place, and more inclined to credit it as the antithesis of the formal financial closure and the pressure to take the attitude, making the non-formal financial underground operation, which the breeding of many social problems.Secondly, the paper examines the informal financial regulation of the internal mechanism. Focused on analyzing the non-formal financial imbalance between supply and demand and asymmetric information for the micro impact of government regulation, the first use of game theory to build non-formal financial lending practices between supply and demand in the main game model, sub-legal regulation, guarantors and mortgage or pledge three case to establish the game model to prove the need for regulatory intervention. At the same time of asymmetric information-based non-formal game model of financial regulation, asymmetric information before the loan would lead to moral hazard and adverse selection after the loan, adverse selection, repayment will not cause most people to obtain loans. Papers based on three game models the use of traditional static game payoff matrix on both sides of the adverse selection problem is analyzed proposed regulatory intervention case of non-formal financial game model, that regulatory intervention can effectively solve the funding needs of the main non-formal financial moral hazard problem, further evidence of the supervision system, legal policy and regulatory review mechanism three ways to effectively address funding needs for non-formal financial body when adverse selection problem.Then, the paper empirical validation of non-formal financial regulation of the external effects. From the direct effects of non-formal financial and regulatory intervention for the indirect effect of non-formal financial analysis of two levels of departure, the funders, government regulation and financing of the three main funding needs together. Questionnaires is intended primarily for Beijing, Shanghai, Zhejiang, Hunan SME or individual households. Data analysis by empirical conclusion:the direct effect of non-formal financial, empirical research shows that demand for capital funding are the main financing has a direct positive effect. Second, non-formal regulatory intervention for the indirect effects of financial, government regulation for the capital needs of the main providers of financing to fund the conversion of a significant role in promoting. And proves the main demand for funds by the audit mechanism is difficult to directly finance non-formal financial.Finally, Further proposed improve China's informal financial regulation recommendations, a clear non-formal financial regulation relaxation of non-formal financial audit control, control of security, efficiency and fairness and the importance of the informal financial risk monitoring of the basic principles. Proposed the establishment of a sound difference between non-formal financial system regulation and optimization of non-formal financial development policies and environmental regulation proposals.Non-formal financial system regulation is bound to improve China's financial supervision to provide the basis for decision making lies, so from an economic practice and legal theory in terms of depth and systematic study of the internal operation of informal financial mechanisms to deep understanding of its external effect, based on different nature and scale of informal finance in differentiated regulation system design, in the present stage is extremely important.