The Reasearch Of Government Oversight Mechanism On Folk Credit Of China

The development of folk credit in our country is always being criticized. Folkcredit is disputable because on the one hand, it is part of China’s financial system thatcannot be ignored, and it does play a positive role; but on the other hand, its disorderlydevelopment its eager for quick success and instant benefit caused a lot of bad socialproblems The negative impact not only directly interfere with the nationalmacro-financial regulation, but also cause a bad impact on social stability and people’sliving. The difficulty in getting finance is more prominent in the western region ofChina than in the eastern region. It challenges local governments. The research of localgovernments on the issue of folk credit behavior becomes very meaningful and ofpractical value.Four large parts form this paper. Part I: Introducing the background, significance,the summary of the research, defining the related concepts and elaborate the relatedtheory. Part II: after the research background is clearly presented, use the publicmanagement theory set forth to elaborate the reason why the current issue ofgovernment regulation of folk credit in China now raises, and then provide someanalysis on this issue. Part III: Based on the issues raised in the second part, sort out andsummarize the advanced experience of foreign countries to provide useful experience todeal with the problem. Part IV: combine foreign experiences and the actual situation ofChina’s local government intervention in the folk credit, and provide recommendationson how should China’s local government manage folk credit under their authority. Ihope the research and discussion of this topic will be of certain referential significancefor people who practice in finance, government officers who supervise this field andscholars who engage in the theoretical research of this area.