The Research Of Standardization Development On Rural Private Lending In Hunan Province

As the rural economy developed, the demand for financial services increased dramatically. However, formal finance still hardly occupy the rural market. It is true that many farmers obtain credit funds from private lending. In our country, there are many problems are aroused by lacking of supervision on rural private lending. It is extremely essential to specificate the activity of rural private lending.Then,making up for shortage of rural capital and promoting the development of rural economy become the key problem in rural financial development.This dissertation makes a survey on private lending behavior in Hunan province. It analyzes the characteristics, the reasons and efficiency of private lending, and then puts forward some targeted recommendations.The paper’s framework and main idea is listed as follows:The first chapter is introduction. This chapter reveals not only the research background and the significance of rural private borrowing, but also the research method and the research achievement from overseas and domestic.The second chapter supposes the basic theory of this paper, It defines the concept of the private lending in rural areas, and focuses research on seven kinds of forms which classified by different standards on rural private lending. In addition, it also raises four theoretical basis, including the transaction cost, financial development, asymmetric information and social capital.The third chapter analyzes the current situation of Hunan province on rural private lending, It selects four samples of Hunan province to investigate. The result displays the basic features of rural private lending in Hunan province.On the basis of the analysis of current situation in the previous section, Chapter4mainly states the positive effect of current private lending in rural economy as well as problem analysis. As a whole,the results find that Hunan rural private lending has more advantages than disadvantages.From discussed above, the fifth chapter have come up with some effective suggestions about standardization development of informal lending.According to the situation of Hunan rural private lending,such as status, characteristics and problems, It required to improve mechanism, promote financial regulation, build better credit environment and standardize government behavior. Only do this can we construct a harmonious financial environment and make the economy developing sustainable.