The Financing Plight Of Non-Governmental Economic And The Development Of The Informal Financial Institutions

Along with the further economy reform, the non-governmental economy has been the most important motive to accelerate our country's sustainable economic growth. After a high-speed development, the non-governmental economy output decreased gradually and the most important cause is its financing plight. The informal financial institutions are institution innovation derived from the situation that the non-governmental enterprises couldn't accept enough funds from formal financial systems. They contributes to keep the non-governmental economy high-speed develop. However, the informal financial institutions always can't be accepted by the government, they still act in the gray district. Thus, how to regular the informal financial institutions in order to make them support the non-governmental economy better and promote the whole economy is a valuable project.This paper used four methods--the cooperation of empirical and regular analysis, historical and logical analysis, quantitative and qualitative analysis, domestic and other country contrast--to demonstrate the financing plight of the non-governmental economy and the development of the informal financial institutions, to analyze the informal financial institutions' institution change from the view of the institution economics, then, put forward the idea about the informal financial institutions future and how to construct the informal financial institutions.This paper implied that the government should adopt the way of " combination of block up and smooth" to regular the informal financial institutions. We should take a lead to the good form and give severe stroke to the bad form. Some forms such as informal financing activities will exit consistently, some forms such as the 'underground banks' will withdraw from the history gradually, and the new forms such as the private banks will appear.This paper creatively confined the informal financial institutions and tried to theoretically explain their institution chang using institution economics. At last, it anticipated the informal financial institutions future.