Analysis On The Role Of Informal Finance Form In China's Finance Ecosystem

The concept"finance ecosystem"or"ecosystem of finance"has already been introduced by governmental officials. By comparing the finance system with the natural ecosystem, this paper looks for their similarities and defines the concept"finance ecosystem"in a particular way. The finance ecosystem is composed of such elements as people, enterprises, products, services, information, money, trade, the law environment, the social environment and the economic environment. There are two forms of finance in the finance ecosystem. One is formal finance form, and the other informal finance form. In order to get a full and accurate understanding of the finance ecosystem, our focus should not only be put on the formal finance form, but also on the informal one that has been in operation"underground"for a long time. But the 2004 decision to tighten the money policy has pushed the informal ones to emerge from underneath. As many formal financial sectors started to say No to the small and medium sized...