Ordos Folk Lending Status Quo Of The Research

In recent years, Ordos has burst developed depending on its coal resources and rich mineral resources. Folk wealth is increasing rapidly, lots of idle funds deposited in the folk. The residents want to gain from idle capital and their value added expectations are higher than ever before. Then financial markets in Ordos are not well developed and not efficient enough. There are few financial instruments, investment opportunities are relatively narrow with actual negative interest rates, a large number of private capital calls for appropriate investment opportunities. Meanwhile, under the situation for Ordos economic development, many small and medium enterprises are springing up to grow, and funding support from financial institutions is limited. The financing problem has become the bottleneck to the development of small and medium enterprises. Under such circumstances, private loan has arisen.Private loans is regular financial complementary and consistent with the development of socialistic market economy, it is not only improve the efficiency of the funds, but also optimize the use of resources allocation and to promote regional economic and individual economy as the vital role; Moreover, private loan is also partly contributed to the reform and improvement of regular financial organizations, and contributed to improve efficiency in financial markets and the financial criterion.After all, private loan flows between voluntary organizations, it is lack of necessary regulation and credit environment. Then great potential risks in private loan. Moreover, the scale and the region of Ordos private loans has increased in recent years, more and more families and individuals has involved. Since the private loans is blindness and profit-driven, it has breed a large number of economic bubbles in some areas, and these industries are gradually revealing the "subprime" shadow under the influence of national macro-control. So researching about policy direction, strengthening supervision and monitoring risks will play the great role and to be necessary.