The Recognition Of Rural Informal Lending In Border Of Jiangxi And Fujian

Over half a century,when talking about informal lending,people would think of "usury",the pressure on borrowers from the landlord bullies and dark forces, the appalling interest and the cruel debt payment methods.By analyzing the rate of Jiangxi and Fujian border before the war(1930-1937)as the case,paper try to liberate lending from the shadow of "usury", so that we can recognit and expand informal lending.What is the basic fact of rural informal lending?This is the research fundation of recogniting informal lending.Paper concluded the situation of rural informal lending rates from the specific distribution in the micro and macro perspective and implicit constraints from the laws,customs,market on lending rates.Different from "usury" in most people knowledge, even in 1930s—the time having a harsh lending environment,the kind of ultra-high and malicious lending accountted for only a little,and most of the lending was mutual and in approved range.Early in the war,the economy in rural China was in decline, farmers was living in hardship, the rural was in depletion of the financial status, rising lending rates and borrowing nowhere appeared simultaneously, demand was greater than the supply, and interest rates increased overall. In the border of Jiangxi and Fujian,the rural economy was more distress for blockade of Soviet and policy of waste debt.During this period most cash lending rate cover from 2 points to 2.5 points, but only little rate was higher than 3 points,and the number of borrowing which rate below 2 points reduced.there were many real lengdings of the highest rates up to 100% in many areas. Even such a high nominal interest rates, informal lending still has a strong mutual nature.During the time most farmers were struggling nowhere to borrow,borrowing itsself is a favor.In all of the lending rates,the lending interest rates,which are collateral and net worth or using for the business,are relatively low.A few interest rates were ultrahigh because of risk premium.which borrowing money has become a non-normal goods and is the special exist beyond the constraints.By analyzing rural informal lending rate,paper try to recognit informal lending,so that we can discard the fear of "usury" and informal lending full play the role in modern society.Paper,in which comparison method is used extensively and the Western economic model and the History are combined,cognit informal lending from the humanities,law, marketing multiple angles.By comparing the two partie's policy before the war in the border of Jiangxi and Fujian and comparing Jiangxi and Fujian area's with the country's financial environment,paper shows the objective economic environment of rural informal lending rate.By analyzing and comparing the pre-war figure in the form of graph and derivating the reasons in the form of economic models.paper shows the 1930s situation of the interest rate in the border of of Jiangxi and Fujian.