Non-formal Financial Development, International Comparative Studies

For a long time,there has always been an obvious trend in both theoretical field and practical field.That is the serious ignorance of the existence and research of informal finance.Infomal finance has no deserved status in theory and is excluded from factors influencing economical and financial policies,which leads to the unmatch between policies and reality and other unexpected effects.This dissertation intends to make a comparision of formation system between developed and developing countries and generalize the development trend of informal finance as well as make some suggestions to China's informal finance.This dissertation is divided into 5 chapters:Chapter 1 :Introduction.It mainly discusses about the concept of "Informal finance" and the organizational form of Informal finance.Chapter 2:The situation of informal finance in developed countries.Though researchers always focus their attention on informal finance in developing countries,undoubtedly,informal finance still widely exists in developed countries.By conducting research on papers related with informal finance in developed countries,we may know its history and current situation.Chapter 3:The situation of informal finance in developing countries.The concern that informal finance in developing countries receives is no less than the debate it arouses.This dissertation intends to summarize the history and current situation by summarize the research conducted by other scholars.Chapter 4:The forming system of informal finance and it's evolutionary trend.Based on what we have done before,we may find the reason for the existing of informal finance in developed countries is banks face incomplete information when giving loans.Therefore,loan business suffers from adverse selection and moral hazard.In order to avoid credit risk,credit rationing is practiced by banks.Some applicants get loan while demand of some applicants is partly met or even not met.However,in developing countries,informal finance is the result of financial depression employed by governments. Chapter 5:Some suggestions on the development of China'informal finance.Byresearching on the supply situation of China's informal finance and the fact of the unbalance between supply and demand,we think financial repression policy employed by the government leads to the development of China's informal finance.As the result,government needs to adjust related policies and makes appropriate innovation to informal finance system.The aim of this innovation is not to increase state's revenue or rents got by related sectors but to reduce uncertainty of this system and cut down tranction costs of informal finance as well as controll possible financial risks,so as to make this kind of financing better serve the improvement of social welfare.