The Research Of Informal Finance Legislation

In recent years, the Informal Finance is becoming more and more active. Withthe constant improvement of China’s market economy, the demand of market for theways of financing tends to diversification. As a supplement of formal financial, theinformal finance makes up for the deficiency of the formal financial. It has presentedsome features, such as a surge in financing needs, double scale year after year, scaleexpansions and high interest rate. As a kind of effective means of capital allocation,informal finance also plays an important role in optimizing the allocation of resources,improving the financing structure, supplying capital needs, and promoting economicdevelopment. However, for a long time, our country has been a lack of special lawsand regulations to guide the informal finance. The informal finance produced a hugerisk, which influenced the stability of the financial markets. Legal issues from thenon-standard development of the informal finance have become a hot social concern.In view of this, it has important theoretical and practical significance to perfect theinformal finance legislation, to promote the legalization and standardization of theinformal finance and to make the informal finance become more transparent.The paper based on the research of informal finance’s concept, characteristicsand forms, explored and integrated the existing legal provisions of informal financeand put forward three principles of informal finance legislation. And then, the paperanalyzed the six big problems of the current informal finance legal system of ourcountry. With these questions, the paper draws on the United States, Japan andGermany and other foreign advanced informal finance legislation.Combined with theactual situation of our country, it puts forward six countermeasures, in order toimprove the informal finance legislation in our country.