Research Of Folk Finance Situation And Countermeasure In China

Along with the vigorous development of our country’s economy and the continued deepening of financial reform system, the pace of private capital in the financial world is grows ever faster, people’s demand for finance shows itself in a trend of diversification at present. The report on "the accelerating improvement of the socialist market economic system and the transformation of the mode of economic development" in the Eighteenth national Congress of the Communist Party of China explicitly proposes that the development of private financial institutions should be continually accelerated. The reaffirmation of folk financial development further illustrates folk finance is of great significance in our country’s economy, we should pay more attention to the folk financial development. At the same time, China is a developing country, and it is in the process of economic transition, folk financial problem is of particularly concern, among which the lagging legislation, high credit risk and difficult manipulative action severely restrict the development of itself, we should guide the folk finance into a way of normative development.Meanwhile, folk financial problem, as an important worldwide subject, has received great attention and excessive researches both at home and abroad in the academic fields in recent years. This thesis has made a comprehensive and systematic analysis of the folk financial problem based on the previous researches. First of all, compared with the definition of formal finance, folk finance is a financing activity that isn’t included in the national financial management system exemplify by Illegal Private Bank and the Rotating Savings and Credit Association which raise money to sustain their organizations. Second, the related theories of folk finance can lay the foundation for this thesis. On this basis, this thesis studies the current situation and existing problem of the folk financial development, synthesizes case analyses on country’s international folk financial development, summarizes experience, draws inspiration and explores countermeasures to standardize the development of private finance in our country and to make it more adapt to the order of the socialist market economic development of our country.