China Informal Finance Study In The Development Of Rural Economy

Rural Finance is one of the mainstay of rural economy, it play an important role in rural economy. With the development of reform and market economy, the demand for financial resources from rural areas has been increasing. The fund supply in rural financial market from the formal finance, however, has been decreasing, which don't meet the demand of the development of rural economy. So it makes informal finance grow well in rural areas. And the informal financial activities which has existed for several thousand years flourishes again in most rural areas of China. Thus attract our attention on the informal finance problem in rural areas of China.The thesis, first of all, expounds some related definition of informal finance and its characteristics in areas of China. Informal finance refers to indirect financing provided by informal financial organs or direct financing invested among individuals or between individuals and entrepreneurs. Secondly, it investigates the form of rural informal finance and calculates the scale of rural informal finance based on the facts and data. Thirdly, it makes an in-depth analysis on the causes of informal finance in areas of China. On the one hand, it analyzes the background and development of rural informal finance from the angle of history. On the other hand, it analyzes the reasons of flourishing of rural informal finance from the angle of supply and demand. Fourthly, the thesis approaches the effects of rural informal finance, which influences the rural economy, and reveals that rural informal finance promotes the development of rural economy. Rural informal finance meets the partial fund demand in the development of rural economy, alleviates the contradiction between supply of formal finance and demand of fund. Finally, through above-mentioned research, the thesis points out the policy and proposal, which standardizes and develops the rural informal finance to promote the complete and development of rural financial market, solve the problem of shortage of financial fund, and provide perfect financial support to rural economy.The article makes use of history and logic, micro and macro, statistical inducing, comparing analyzing and other study methods. The thesis calculates the scale of rural informal finance, analyzes the causes of flourishing of rural informal finance, and points out the policy and proposal that standardizes and develops the rural informal finance, which is the main innovative point of this thesis.