The Research Of Informal Financial Problems In Our Country

Since the reform and opening of China,our country's formal financial market has developed rapidly and become mature gradually.This market includes monetary market, credit market,stock market and bond market.With the further development of our country's progressive reform in economic system,the financial provision from formal financial institutions cannot meet the need of increasing financial request from all fields of the society.This objectively provides certain conditions and motivations for the appearance and development of informal finance in China.This appearance,with bom advantages, meets the need of rural small and medium enterprises and private enterprises for their necessary funds,thus contributing to the prosperity and development of China's economy. However,informal finance also has some shortages,such as the lack of legal authority, nonstandard inner management and the possibility of speculation and cheating.These might have a negative effect on the stability of China's financial system,the healthy development of financial market and the execution of the government's related policies. Thus it is of great importance to solve the problems and maintain a right attitude toward informal finance and make it grow up healthily.Theoretically,there are two chief elements that influence the development of informal finance,including soft restrictions such as history,cultures and customs,and hard restrictions such as laws and policies.This paper observes some informal financial theories from domestic and abroad.Based on these,the paper analyses the causes of our country's informal finance,and the principles,characters and current situation of its interest rate.It also studies the reasons of high interest rate in the market.According to the research mentioned above,this paper points out necessary countermeasures taken to deal with the informal finance.First of all,the legal position of informal finance should be authorized. Second,the government should improve the supervise system and strengthen it.Third,the medium and small enterprises financing system needs to be set up so as to consummate the financial provision system.Then we should push the reform of interest market to guarantee informal financial activities.Also a deposit insurance system should be established in our country,and we can explore several investing channels and guide the social capital in a right way.Last,innovation of financial system is also important to the privatization of informal finance.