The Economic Analysis Of Folk Financial In Jilin Province

Folk finance is not available due to a financial policy and legal support, alienation from the existing financial institutions and institutional arrangements other than a strong market-oriented liberalization of financial activities outside the system colors; with the formal financial comparison. it was also known as non-formal finance. As the name suggests, the rural folk financing is the phenomenon of folk finance and financial activities that occurred in rural areas, thus the rural folk financing is also known as the rural non-formal finance.Folk Financial phenomenon in our rural areas had been a long time before years of development, Nowadays it has become a major financial forms and financial instruments in China's rural areas, In China's rural credit market, private banking has occupied the absolute advantage, private banking has become the main financing of the rural economy an important channel.Folk financial strength in China's rural areas should not be underestimated, its impact is very importance. China's rural existence and development of folk finance had both positive and negative side. From a positive point of view, Folk finance in China's rural areas to promote rural economic development, resolving individual farmers and rural enterprises production and other funds needed to make up for lack of credit, as well as speed up the flow and use of social capital has played a positive role. From a negative point of view, on the one hand, impact of monetary policy and the comprehensive implementation of interest rate policy, bring difficulties to the national macro-control, on the other hand, rural underground financial pregnant with a huge financial risk, prone to economic disputes, disrupting social order, or undermines social stability, in addition, monitoring absence, coupled with the internal organization of the rural financial system instability, Ground Floor, easy to damage the interests of farmers. Therefore, China must strengthen the rural underground financial supervision and guidance, while avoiding disadvantages.Jilin Province is a major agricultural area, the formal financial development is limited, To some extent, Folk finance rapid development. According to the study found that a significant part in Jilin Province in rural areas, rural residents access to folk finance has been the primary means of financial support. As noted above, there is two sides to finance the rural folk, can not be denied, the existence of private banking in rural areas of Jilin Province Jilin Province's economic development in rural areas provided a considerable degree of financial support, at the same time, we must soberly recognize that the rural folk financing behind the great risk. In this case, This article will penetrate analyzes folk finance existence and the development reason in the Jilin Province countryside, as well as it the influence which creates to the Jilin Province economy and the social development. Through the analysis, this article proposed the target-oriented policy suggested that helps us to guide the Jilin Province folk finance of rural healthy development well, plays its positive role fully, limits its negative effect.