Rural Finance Financing Model Study

Since the 80s of the 20th century, the demand for financial resourcesfrom rural areas has been increasing with the development of ruraleconomy. The fund supply in rural financial market from the formalfinance, however, has shrunk and even pumped out, which resulted in thefringe of rural finance and more seriously the blank-fund-supply fromformal financial institutions in some places. So the informal financialactivities which had existed for several thousand years flourished again inmost rural areas of China, especially in some developed coastal regionswherein formal financial activities are very popular and in some partsinformal finance even overrun the formal ones. This, thus, attracted ourattention on the informal finance problem in rural areas of China. On thebasis of investigation and research on informal financial activities in therural areas of Hunan province as a big developed coastal and agriculturalsouthern province, and the study from the development and policydirection of informal finance in many overseas countries and regions, thisdissertation demonstrated and discussed systematically some questionssuch as the fringing of rural finance as well as its forming system, thetransition and operation systems of rural informal finance, thecompetitive and cooperative relationship between formal and informalfinance and how to induce the formal and informal finance to develop in harmony through finance innovation, etc.