A Research On Informal Finance In China

Informal finance refers to various kinds of investment and fund debt-credit activities not supervised by the government. According to Chinese reality, informal finance has become an important supplement of formal finance, and played a significant role in alleviating mall and medium-sized enterprises' financing problem, supporting the development of local economy, promoting financial system efficiency, perfecting local credit system, etc. It is a pity to find that domestic scholars haven't done deep research on informal finance, some scholars still have certain prejudice to informal finance, this kind of situation is unfavorable to the benign development of the informal finance of our country. This paper aims at making some contribution to better policy making by carrying on a systematic research to informal finance in China.This paper has at first analyzed the reason of the emergence and development of informal finance of our country in terms of demand, supply and culture. Then, the author has introduced scale of fund, multi-form, contractual feature and fund use of informal finance of our country sequentially, so as to sketch the contours of the basic situation of our country's informal financial development. Seeing that interest rate a key variable in informal finance research, the author carries on an empirical study on it specially, and provide corresponding economics to explain on two important conclusions that the empirical study draw. Afterwards, through the statistical and institutional analysis, the author carries on a deep discussion to the positive role of informal finance in our country's economic development; it has pointed out its some negative effects existing at the same time. In view of this, the author argues that government can't let drift while treating the informal finance, can't exercise restraint in attacking simply either, and should " dredge and stop up " and combine, urge its norm. What is called " dredging", but standardize the development of informal finance, lead the informal finance to be favorable to our country's economic development, set up various kinds of relevant laws and regulations, construct a legal activity platform for the informal finance; " stopping up" is stopping up the negativefunction of informal finance through various kinds of measures, strengthen the loan supporting dynamics to small and medium-sized enterprises and agricultural economy of the formal finance, increase input to the loan for agriculture , devote more efforts to attacking usury and the social criminal syndicate.