Study On Rural Folk Debit And Credit In The City Of Feicheng

Our country is a developing country.china is based on public ownership and in the same time avariety of non-public ownership economy coexisted. After the reform and opening up, along with thedevelopment of market economy, the non-public economy also began to grow rapidly. Because of ourcountry’s formal financial system still exist many deficiencies, small and medium-sized private enterprises,individual industrial and commercial households and individual residents demand for funds in the formalfinancial institutions can not be met, the private enterprise loans difficult phenomenon to happen. In thiscase, private small and medium enterprises will look to the private lending market. Folk loan can not onlycompensate for the formal financial shortage of supply mechanism of capital but also better able to adapt tothe " folk financing characteristics of short, small, frequency, urgency",this is the main reason of privatelending to widespread in china’s vastrural areas.In China’s rural areas mainly in the small-scale peasant economy, folk lending is the product ofthe small peasant economy. The development of rural economy of farmer demand for capital is more urgent,can not meet the demand for funds in the formal financial institutions in rural areas amount, rural folk debitand credit has become the main channel of financing for private enterprises and farmers in rural areas. Evenso, the folk lending in rural China has been in the state, the government has not formulated specifically forfolk financing legal and regulatory system, which makes the rural folk debit and credit exist many hiddendangers, illegal fund-raising and usury is the product of the rural folk debit and credit the lack of restraintmechanism. In view of this, we must be based on deep understanding of rural private lending, formulates aseries in view of private lending strategies, to the development direction of China’s rural folk lendingstandards. The choice of a county-level city-Feicheng as the object of observation, investigation andResearch on the above problems, some conclusions and opinions from, help to understand the financialstatus of rural people, and provide a reference for the development direction of rural private lending.There are five parts in this paper:The first part, introduction, mainly explains the research background, the significance of folkloan, ideas and methods, main points of view on borrowing abroad at present were summarized. This chapter is mainly on the literature about rural borrowing the concept and definition, folk lending situation,characteristics, sources and uses of funds, the causes of the study focuses, innovation and deficiency of theresearch ideas and methods given in the end of this chapter, this paper exist.The second part, analysis of the current situation of folk loan in rural areas of Feicheng city. Thischapter mainly through private lending to Feicheng City Jiang Hua Cun were investigated to illustrate thecurrent situation and characteristics of the development of private lending in rural areas of feicheng city.The third part, analysis of the causes of rural private lending in Feicheng City, on the basis thatthe area of private lending potential problems. This chapter summarizes the folk debit and credit in ruralarea of Feicheng city is a product of the small-scale peasant economy, it exists in the absence of formalfinancial system in the rural financial market and the farmers in the formal financial institutions loans etc..In the rural areas of Feicheng folk lending has lagged behind the development, regulatory system is notperfect, the credit system is not perfect, the corresponding lawsand regulations lack of.The fourth part, the United States, Bangladesh, Taiwan, Wenzhou as the representative of thefolk financing successfully developed area development experience. Looking for inspiration and providingexperience and reference for Feicheng and even our country folk financing in mainland China from theseborrowing the successful development of the countries and regions.The fifth part, proposed the rural folk debit and credit standards and development of Feicheng.This chapter mainly from five aspects to give suggestions to regulate the development of folk loan, mustfirst carry on the system innovation; secondly to effective supervision of private borrowing; once again tobe the folk interest rate market; finally, encourage private financing institutions to participate in theestablishment of private banks and the positive development of rural microfinance.