The Thesis About The Problems Of Our Country's Informal Financial Reformation And Development

Before the formal financial institution came into being, the capital circulation of human financial activity almost all relied on folk debit and credit. With the birth and development of the formal financial institutions such as banks, especially after the reformation and opening-up of our country, our country's formal financial market developed rapidly. The formal financial market made of money market, credit market, stock market and debt market is becoming more mature and plays an important role in the prosperity of the domestic economy. But for some history and systematic reasons, the countryside develops far behind the city, especially in fund. The lack of fund has become the critical problems of the country construction. However, there is phenomenon weakening country finance such as the overflow of country fund and the decrease of country loan in the formal financial market. The contradiction of command and need creates the conditions and motivity for the development of our country informal financial market.The existence and development of our country informal finance contribute to the prosperity and development of our country economy. However,it is not approbated by our country's law and its internal management is not canonical, which might cause speculation and fraud ,thus great financial risk. So solving the problems of how to look on our country informal finance and how to make it develop well is very pressing.This paper first summarizes the theory, demarcates the range, introduces the main format of our country informal finance and analyzes the positive and negative effect of the existence and development of it on our country economy . It also makes deep analysis to the real reasons and theoretical factors of the active development of our country informal finance. In addition ,it analyzes three typical foreign modes of solving country informal finance ,combining with analyzing the investigation of Jiangsu province's typical areas.Thus, the paper presents relative suggestions on how to regulate our country informal finance to have an positive effect on the rapid increase of the country economy and to decrease its negative effect.First ,the government should give the country informal finance legal status, regulate it instead of banning it; perfect relative laws and regulations, ensuring it works healthily and develops orderly; meanwhile , improve the service system of the country finance and increase formal financial supply; advance the financial reformation ,establish deposit insurance system, blaze various investment ways and attract some capital diffluent by informal finance.