The Research Of The Condition Of Chinese Folk Finance Development And Tendency Question

With our country's reform and open policy deepening and market economy development, diversification of the financial service demand is increasing day by day. Folk finance is becoming the focus in our financial industry these days, by its market adaptability and life force when folk finance was born. No matter developed areas and poor areas, folk finance is extremely common. It not only utilitized allocation of resources, but lighten the financial pressure for rural areas, middle and small sized enterprises, narrow the gap between the capital demand and supple in China. Folk finance has been the indispensable capital supplement which the rural areas and middle and small sized enterprises are lack of after the finance marketlized.However, just like everything has both its good and bad sides, folk finance also has its own disadvantage. Folk finance has long history. The illegal finance such as usury has stayed in the gray or black area in its evolution. It not only caused government rectified financial order frequently, but brought the masses with illusion that folk finance equates with financial risk.This paper researched the folk finance that is outside the official financial system, including legal finance, illegal finance and so on. Folk finance owns broad survival condition and space of development in these days. No matter what is the attitude of government for folk finance, it is much meaningful to choose 'The Research of the Condition of Chinese Folk Finance Development and Tendency Question' as the thesis. If we supervise more strictly, it is easy to twist the function of allocation of resources, instabilizing the market terribly. If we ignore the risk of folk finance, relaxing the supervision, it must cause disorder. The healthy folk finance cannot leave the support of policy and the protection of law. We should avoid what happened in the past, realizing the folk financial interior drive and outside motivation, exploring the fundamental reason and influential factor causing folk finance developed towards the bad direction, then taking effective measures. All in all, we should effectively use the treasury of folk finance to satisfy the demand of private economy and market-oriented economy.