A Survey About The Development Of Informal Finance In Wulanchabu Of Inner Mongolia

Informal finance is a part of financial system which operates free from financialregulation. It is a concept in contrast to formal finance which operation is under therelated financial laws and regulations. Informal finance exists in many places whichrange from the urban areas to the rural areas. It develops very fast but there is a lackof supervision in its development process. The occurrence and the development ofinformal finance has certain benefits to local economy and society, but it can also doharm to normal development of local economy. In this article the author try to indicatethe current state and features of the development in Wulanchabu of Inner Mongolia byusing the data gained from author’s survey in Wulanchabu.This article focuses on the rapid development of informal finance in Wulanchabudistrict which locates in the middle of Inner Mongolia. In the first part of the articlethe author writes the introduction of the whole article; In the second part the authordescribes the current state and problems of local informal finance development.Thirdly，the author mainly devotes the features of local informal finance and thereasons why local informal finance develops in such a rapid speed. In the fourth partthe author mainly analysis the informal positive effects and negative effects informalfinance has on local economy and society development. Finally，this paper tries tooffer policy suggestions in order to better promote the economic development ofWulanchabu.