Research On Rural Informal Finance In Our Country

Before the birth of the formal financial institutions, finance in the human economic activity mainly depended on informal credit. With the development of formal financial institutions, such as the bank ,etc, the informal finance has become supporting roles of the whole financial market gradually, but it has never withdrawn from the stage of history of the finance . On the contrary, in the modern economic society where formal finance is highly developed, the informal finance demonstrates the vigorous powerful momentum too. Especially in the rural economy of developing countries , informal finance plays more and more improtant roles . Abroad , though have a large amount of research to the informal finance , still lack the deep exploration to the informal finance in our country.From the view of the theory, soft restraint such as history, culture and custom, and hard restraints such as law, politics, etc. are the main factors which influence rural informal financial development. Based on the above-mentioned theoretical research, the paper deeply explains realistic reasons and essential factors of the informal finance of our country. And it explores two different ways of formal and informal financial development. At last it analyses that how the informal finance influences various fields such as economy, society. etc in the countryside.And through above-mentioned research, the paper points out that our country should take effective meatures to develop the rural finance. On the one hand, we should adjust the patterns of the development of formal financial institutions. On the other hand, we should guide and normalize the development of informal finance actively. Thus it promotes the development of rural finance of our country, and optimizes the allocation of resources of rural credit.