Calculating The Capital Amount Of Civil Finance In China And Analysis Of Its Economic Effect

The civil finance issue has been paid close attention in academe, especially when the further development of small and middle size enterprises are suffocated and the development of rural finance still encounter many difficult. Civil finance, as a finance form independence from the state-owned finance, has been exist everywhere of our country in many kinds of forms. But how has the civil finance been developed, how is the capital amount of it and how is its effect upon the economy? We will discuss those issues in turn later in this article.We first we brief illustrate the course of civil finance has passed and the form it exist. And then we finger out the civil finance in China turn up to be located everywhere, the capital comes from the private, the money is used manly for non-product demand and for many different require vary from area, and the civil finance is becoming more and more formal and professional.Secondly, we also calculate the capital development speed of civil finance from 1991 to 2006, and then go on to calculate the capital amount of it. In doing that, we come to a conclusion that civil finance is in its low growing these years.Thirdly, we discuss the way civil finance affect the economy grow from both the positive side and negative side. Discussing the superiority of civil finance in save driven, collecting investment information, monitoring and controlling, trade convenient, separating risk, technology innovation supporting and enhancing competition. Illustrating the negative of civil finance by discussing it unable to control its capital flow and risk, possibility of it go against the wish of government and make against the unite of the whole market.Finally in order to make formal finance system more perfectly, we suggest to speed up the step of setting the rate free, establish a more perfect system for hypothecation, bankruptcy and credit, establish a insurance system for agriculture and establish a chattel mortgage system, increase the supply of formal rural finance and exploit more channels for investing. In order to make full use of the positive of civil finance, we argue that led the development of civil finance to a more positive way by establishing law, system and enhance monitoring, allowing the existence for some kind of civil finance and clamping down the negative acting, establishing the contact between the informal financial institutes and formal financial institutes.