The Research On Rural Informal Finance's Development In China

Non-financial was prevalent in the world, but which was different from their own because of the specific environment. rural-based financial Inhibition supply was Prevalent in China, Non-financial had become an inevitable choice rural-based financial Inhibition supply the main capital of rural economy was not effectively meet the needs , private finance had become an inevitable choice. Non-financial development of the national economy has made a greater contribution to the promotion of rural economic development. it has played an important role for financial system reform and innovation to provide a new experience and ideas it will help improve the efficiency of the use of funds. In addition, the development of rural non-financial help strengthen social credit awareness, promotion of credit to improve the environment. non-financial based on non-system of trust, with scattered, blindness, non-normative, operational form of the complexity decided its activities and act with gray or probability, it may cause large financial risks and increase social Stabilizing factor. However, the Government has not work out related policies, for its rationalization, and provide a platform for the development of legalization.In this paper, We used the new institutional economics, finance, economics, agriculture and other related theories. First of all, we introduced the study of the non-financial at home and abroad and defined the basic concept of non-financial and summed up the form of non-financial operation, introduced China's rural financial market characterized by non-governmental, and the current estimate of China's rural areas the size of the non-financial. From the system and changes in the economics of information, such as financial risk analysis of the perspective of China's non-financial cause and the inevitability. As Shandong Province for example, we introduced the development of non-financial profile, and took the regression analysis in the private financing by the size of many factors. On this basis, we cited non-financial development of high interest rates, the lack of legal status, the risk of localized, and other factors. The non-financial development of high interest rates were especially analyzed in a high rate of non-financial Analysis of the reasons for the formation of the basic knowledge. Financial non-high interest rates was the compensation on high-risk and the opportunity cost and decided by the scarcity of capital, the capital market is the result of free competition. The root cause is not in the non-financial itself, but in a more formal financial non-financial risks compared to bigger.From Foreign management-related experience, combined with the characteristics of rural productivity and the level of the rural financial demands we put forward a non-financial development in rural areas of the three paths to choose:Encourage non-normal financial activities and the fight against irregular financial activities of non-governmental, non-rural finance and an effective link between the formal financial problems, suitable for the formation of community banks. Finally, for the rural folk in the development of numerous financial constraints, the proposed construction of non-financial well-developed system of the external environment: to create a fair legal environment, credit environment, low-cost, flexible regulatory framework, a sound market environment Construction, a sound credit guarantee system.