The Research Of The Relationship Betweeen The Private Finance And The Formal Finance From The Perspective Of Bborrowinng Behavvior

At present, China’s rural formal finance is not effective to solve the farmers’financial needs, the farmers’ financial needs very difficult from the formal financialinstitutions are met, and serious financial gap is widespread in Chinese rural areas,and as the endogenous system, the rural finance is widespread in rural areas too. Thecurrent focus of the rural financial reform is how to correctly understand therelationship between the rural finance and the formal financial.Based on the survey data set on the515rural households in Jin Jiang, this paperempirically analyzes the rural finance market, found that informal finance and formalfinance will be make the different lending options based on the different informationsignals. On this basis，this paper empirically analyzes the competition relation andcomplementary relationship between the two, and Explores the interrelationshipbetween formation. And at last, Describes the policy proposal. On one hand, thispaper studies on Jinjiang rural finance and peasant groups research to solve thefinancing difficulties that is good for guiding and regulating the development ofprivate finance in China. On the other hand, by Loaning line displacement on folkfinance and formal finance in relation to each other, this paper promotes theoreticalstudy and expands the related knowledge.At last, this paper argues that regulation should be strengthened to establishFinancial Linkage, which effectively overcomes rural finance systemic defects, andpromotes rural economic development.