Study On The Ordos Informal Financing

The informal financing is an ancient financing way. It has existed for hundreds of years, and still exists in the modern developed financial society. The informal financing lies in the outside of the formal financial system, it has positive effects on China’s economic development and the reform of financial system. But its harm becomes more and more serious. Since the beginning of this century, the Ordos economy has achieved the rapid development with an increasing number of underground banks and pawn shops. As Ordos region’s rapid economic development, the financial management is not standardized and leads to funding strand breaks, and economy bubble, but also to the economic development of Ordos City.This paper consists of two lines, the combination of history and logic to comb the development of our country folk lending conditions based on related theory and analyzed its causes.Take for example, this paper expounds the ordos rapid economic development has produced the expansion of the private lending, as a result of the economic bubble, to Analysis of the financial regulatory disadvantages to ordos economic impact。Has analyzed our country folk lending problems and causes, and put forward ideas and suggestions to the economic structure adjustment and industrial transformation of Erdos.The paper proposes the countermeasures and suggestions from government policy, financial sector supervision and the rule of law.The Ordos active informal financing has played a positive role in relieving pressure on the formal financial system credit funds, supporting local economic development, expanding financing channels. To a certain extent, it promotes the rapid development of the Ordos private economy, and created the "Ordos phenomenon." However, where there are many problems of anomie, likely to cause systemic risks. Irregular informal financing has a negative impact on the functioning of our whole economy. In the second part, the innovation and further exploration is analyzes the Erdos folk lending industry structure from the borrowing and financial supervision. It is discussed the relationship between the pattern of economic development of Erdos and borrowing of folk and deep thinking the problem of directional flow of private capital. At the same time to provide services for the transformation of the mode of economic development and the upgrading of the industrial structure.The third part is this article key point. It is Propose the solution to the problem,which is caused by Ordos informal financing.The chaotic informal financing market is with large potential risks. The issues raised by Ordos informal financing indicates that financial regulation is not standardized. In order to establish a benign operation, standardized and orderly financial system and safeguard the healthy development of the socialist market economy, we must follow the following general principles:legalization, transparency; guiding norms and combating against; building powerful informal financing regulatory regime; finding solutions to problems caused by informal financing and simultaneously supporting reforms. Suggestions for specific purposes are:positioning informal financing from the legal perspective; regulating informal financing regulation implementing rules to guard against financial risks; resolving informal financing problems in diverse ways. Ordos informal financing issues are worthy of long-term studies, I will continue to focus on this issue in future research progress, focus on the latest research results and relevant information, richen the research contents in time.