Study On The Government Supervision Of Informal Finance

The informal finance systems play an irreplaceable role in solving the problem of small and medium-sized enterprises in financing in China. Because lacking of legislation, there are many problems exist in it. The government's traditional basic attitude to the informal finance was to suppress its development.Today,facing financing demands'enlarging and weakness of legislation, investigating and analyzing different informal finance systems, find a more efficient and reasonable management mode in order to guide and promote the informal finance expand to the positive directions. Through the study on variety of regulatory and measures of informal finance, we found that our register system has a very clear advantage to adapt to the reality of the current regulatory needs of informal finance. Through the construction of register system, on the one hand, it can greatest degree of respect for private capital flows from both informal finance activities by the freedom of contract,on the anther hand, it can reduce the potential negative impact which will affect the security of financing ecological of the socialist market economy to a more safe level.