Non-formal Financial Impact On Economic Growth In Rural Areas Of Anhui

Economic reform and rural Anhui in central China strategy, driven by the relativepoverty has gradually get rid of the situation, the rapid development of the rural economy.Economic development requires substantial liquidity support, Anhui rural areas due togeographical conditions and historical conditions, farmers own limited funds, policycoverage of agriculture funds narrow, formal financial institutions in reducing cost andrisk diversification considerations gradually reduce rural credit funds invested, a directresult of the rural households and enterprises are unable to obtain funds from the formalfinancial channels. The face of development opportunities, Anhui farmers and enterprisesdo not sit still, but have turned to non-formal financial channels for financing. So, fornow, just rely purely formal financial markets have bee n very difficult to meet Anhuirural economic development needs of the body, the long-term remains hidden in ruralnon-formal financial activity largely replaced the formal financial impact on economicgrowth effect. For a long time, the informal financial problem has been governmentdepartments and financial regulatory authorities ignored or even hostility, often dubbed"disrupting financial order" offenses against or limit, did not achieve the status of theiridentity. However, non-formal financial activities has not been out of the rural market,but increasingly showing active state.This paper first introduces the basic form of non-formal financial and characteristics,shows the difference with the formal financial intuitive form of expression, and thedeparture from the theoretical and the actual situation in rural areas in Anhui review ofnon-formal financial booming. Second, we use the principle of metrology from anempirical point of view of the non-formal financial impact of the economic growth inrural areas of Anhui, to clarify the Rural Informal Finance has a comparative advantagein financing costs, borrowing procedures, the availability of funds, relative to the formalfinancial pointed out that the non-formal financial advantages outweigh thedisadvantages in Anhui rural economic development and improve the living standards offarmers, government and financial regulatory authorities should face up to the existenceof non-formal finance.As produced in the interior rural financial markets, there is no effective restraintmechanism and internal control systems, Anhui Rural Informal Finance there are manydrawbacks, such as the operation is not standardized, high-risk, speculative, concealment and so on. These deficiencies led directly to the rural capital flows can not control,undermine national macro-control policies for rural areas affected, to a certain extent,interferes with the normal financial order in rural areas, it will lead to serious socialinstability. Therefore, the Government and the relevant financial sector should Anhuiactual situation in rural areas, the rural non-formal financial actively guide andreasonable use, capitalize on the trend, while avoiding disadvantages, harmonious formalfinancial and non-financial co-existence of formal dual financial structure, promoteeconomic and social development in rural areas of Anhui achieve a qualitative leap.