Study Of Folk Financial Problems

The private economy highlighted its growing importance in economic growth, employment and other aspects during Chinese gradual process of economic transition, and Informal finance makes a great contribution to the growth of the private economy. As a spontaneous financial institution, informal finance has provided financing services to the private economy, and promoted the development of the national economy. However, in recent years a lot of illegal cases of informal finance exposure also show that informal finance has dual character. China is a very large developing country, and informal finance problem is very outstanding, which has a very important effect to the finance life of the entire country. Therefore, studying Chinese informal finance problem has urgent and great practical significance.On the basis of previous studies, this paper conducted a comprehensive study to informal finance problem. This paper has at first introduced the financial restraint theory, the financial deepening theory, the financial intermediary theory, the institutional change theory and other classical theories. Then, this paper carries on a deep discussion to the reasons of our informal finance formation and development.Afterwards, the paper has introduced scale of fund, multi-form, and the role played, so as to sketch the contours of the basic situation of our country's informal financial development. Subsequently, the paper discussed the problems of informal finance facing. Finally, we forecast the future trends of informal finance development, on this basis, the author introduced the example of Zhejiang Tailong Commercial Bank, so as to hope that the example of Tailong bank could provide a solution to informal finance development, and have submitted corresponding policy suggestion.The main innovations in this paper are: First, this paper makes a more comprehensive analysis on the deep-seated reasons of formation and development, the status, potential problems and future development trends at this stage Chinese informal finance. Second, the author of this paper summed up the successful practices of Zhejiang Tailong Commercial Bank, so as to provide reference for our country guides informal finance change into private finance.