The Research About Internal Mechanism Of Rural Private Credit Under The Perspective Of Social Capital Theory

Private credit has a long history in our country. Especially after China's reform and opening, the rural economy have developed rapidly, but in China the rural financial system reform cannot satisfy the rural economic transformation of financial services growing demand, so that rural private credit in this context developed rapidly. But considering the social function and development trend of private credit, many scholars think that we should strive to make it legitimate and strengthen the supervision to private credit from the authority, but from a sociological perspective, I think rural private credit has its own internal development mechanism:First, the current Chinese rural society still is a traditional "acquaintances society", and interpersonal relationship is based on the basis of still kinship of strong relation network. Network integration mode is still a cane nice sense of community, social relations in the trust relationship are still a special socialist trust, and social capital sense does not have big changeable trend. Secondly, rural private credit is based on "the trust relationships" acquaintances, and trust is on the basis of the first condition of borrowing implemented. Trust is foundation of credit, and special socialist trust within-group is the foundation of the sustaining mechanism of rural private credit; to the contrary, private credit further expands both the lending sustaining and trust. Again, the social network strong tying to rural private credit behavior has social conditionality, which is the important condition of borrowing sustainable development. Through the deepening of the non-government loan based on trust, trust will make the social networks continue to expand. Finally, our country rural community mainly take the social trust of "inner system" rather than the social trust of "external system" at present, and the radius of the trust in rural society of is still "the pattern of difference sequence" system covering the scope for border in legal constraints. Compared with the established on the basis of "the external system type", "social trust inner system type" in traditional social trust is both farmers under the regional cultural factors, which make the behavior voluntary. At the same time, the mechanism of trust also produces kinds of recessive cost constraints of opportunism.This paper is mainly divided into four parts. The first part is literature review about development research of our country private credit and social capital theory. Based on the literature review of present development status of rural private credit we can draw the conclusion that present academia for rural private credit research is still mainly pauses the supply and demand in the economics, and mainly from capital market mechanism Angle to explore the possibility of the existence of private credit. At the same time, scholars affirmed the complementary role of rural private credit in financial markets again and pointed out its negative influence rural to financial market order. And the author's research is mainly from perspective of social capital theory. Through the literature review, the author tries to explore the decisive influence factors of internal development mechanism in such a theoretical framework. The second part mainly expounds the causes and development situation of rural private credit. About the causes of rural folk credit, the author thinks it is mainly due to the laggard rural financial system. Rural regular financial credit relative is weakening and rural "acquaintances society capital" is increasing. The administrative intervention and their management, etc make the rural regular financial credit not pure, instead the convenient, quick, effective advantages of rural private credit still attracts many financial subject in capital supply and demand condition turning to tension, and rural private credit in the countryside developed up. The third part is the combination of case description exploring rural private credit development intrinsic mechanism. Through the study of influencing factors in Y, the author found the development of Y village economic to expanding demand of the capital is under the background of its lending mainly resorting to "acquaintances society" strong relation network within-group financial entities. These subjects between ethics-focused natural inter-subjectivity trust of network just exists within the group's members exclusively, and it is also the network regulating that this strong relationship network to the economic behavior of financial subject has huge contact constraint mechanism with the development of rural private credit movement. The fourth part mainly achieves a conclusion. Strong relationship of trust is inside the network of rural private credit satisfying condition; the members of online relationships within the advantageous to the network trade frequently; the expansion of trust strong relation network constraint mechanism is the necessity to realize the rural private credit conditions; the deepening of rural folk credit further strengthen the network group relationship. In a word, it is this strong relation network guarantee rural private credit operation universality and sustainability.In short, our country rural private credit is in such an inner mechanism virtuous operation and development, as the formal financial effectively complement rural private credit does not exist for disturbing the formal financial order, and the so-called disturbing those who illegally funding "underground financial" act, aren't this research scope. The confused state of both the containment policy private credit taken and seeking ways of its legal operation do not meet the internal operation demand of rule private credit. The development of rural private credit must follow its own internal mechanism to ensure its efficiency in financial markets.