Research On Formalization Of China's Informal Finance

The transformation of China dual economic structure relies on the development of Informal Financial' s function. It' s urgent needed to regulate the Informal Financial because it exists enormous risks for its concealed nature. It has great practical significance to do research on the formalized development of the Informal Financial.This thesis analyzes the generation logic of the Informal Financial by using the economics of information principle and theories on system changes. It also inspects the specific ways of the formalized development of the Informal Financial through aggregating and using predecessor's theories. The regulation of the Informal Financial could be achieved by encouraging civil funds to take part in the development of the Small and medium-sized financial institutions. Then it can play a positive role in financial resource allocation and promote the transformation of China's dual economic structure.The thesis firstly analyzes deep reasons about the existence and development of the Informal Financial. Found that its occurrence is inevitability and reasonable. According to the Informal Financial' s current situation, the thesis points out that the diversity of the Small and medium-sized financial institutions and its urgent desires for developing provide opportunities to regulate the Informal Financial. The evolution experience of Taiwan and other countries tells us that the developing mainstream of the Informal Financial is gradually standardized .This has been testified. As China is on Economic restructuring stage, the imbalance in local economic development needs varied ways to regulate the Informal Financial. Encouraging Civil funds to take part in the development of the small and medium-sized financial institutions is an effective way to solve the problem. The keys of the thesis are to analyzes the specific ways and measures for civil funds to take part in the development of the small and medium-sized financial institutions, such as local small and medium-sized banks,micro credit organizations,local financial cooperation organizations,insurance,security,trust and leasing and so on, suggestions have been given on policies and regulations and support system should be in the process of formalization.