The Establishment And Improvement Of The Legal System In Informal Financing Of China

The purpose of this dissertation is to expatiate those problems existed in informal financing and then to give some suggestions about this issue. With the rapid development of society and economy, private financing exists in this course and exerts a positive influence on our national advance. Informal finance is usually defined as a kind of financing activity that beyond the government policy control, corresponding with the formal finance and aiming for raising money. Informal finance exists mainly in such forms as informal money-lending, rotating savings and credit associations, illegal bank, privately offered funds, mortgage and collecting money openly from public etc. In recent years, the form of folk financing become more diversified. At the same time, with the increasing loan demand and interest rate, folk financing also poses a negative influence on our economic development. Not only does this problem hinder our market-oriented adjustment of informal financing, but affect the healthy and orderly development of domestic economies. As a result, in order to provides precondition and guarantee for the good running of economy, it is necessary to apply laws to standardize and regulate this process. From a wide view of other countries（regions）’laws and regulations, there is a certain provision in private financing. However, laws & regulations of our country about that are embodied in different sections, which has been partly responsible for the consequence of running inefficiently in practic. Therefore, of crucial importance is to legislate related norms and legal system in private financing.