Study Of Modern Folk Financial Problems

Since reform and opening up, China's economic system has undergone changes, from a planned economy to a market economy, which is a changing course of China's economic structure. With the deepening marketization, China's economic structure has undergone tremendous changes, the non-public economy has become an important component of the national economy in China. But in the process of the economic system changing, the financial system is lagged behind changes in the economic structure, the government , for their own interests, still dominates the financial resources and only provides financial supply to state-owned enterprises and large enterprises. Because the private economy developed from Marketization process can not get effective developing financial supply from the formal financial department, civil finance appears which can fulfill funds needing of private economy.For a long time, civil financial was treated as underground financial by government and always attempt to use administrative means to resolve civil financial issues, but practice proved it to be unsuccessful and many problems still exist. Currently, according to the central bank survey of civil financing projections, there are about 950 billion yuan, around 6.96% of GDP, accounting for about 5.92% of the home and foreign currency loans. Such a large-scale funds outside the circle of formal financial funds means a large financial risks and according the framework of WTO, China's financial industry by the end of 2006 will open to the world. In this background, to maintain our normal financial order, prevent and defuse financial risks, safeguard financial security, enhance the competitive strength of our financial industry, we must take steps to make the large civil financial funds more standardizing and consolidating. At the same time, there is a very important practical question: our economy is in the transition period from planned economic to market and the whole...