Study On Perfect Our Country Folk Financial System

The development of Folk finance in our country has a long history, there are different formsof it, and about the definition of folk finance, domestic does not have a unified conclusion.Banks, pawn, belong to a part of the folk financial organizations, such as a support, had beenplayed an important role in China’s historical stage. China’s folk financial development is akind of typical institutional changed, it is accompanied by China’s gradual marketization.Since the reform and opening up, our country gradually established the market economicsystem in Chinese characteristics, with the establishment of the market economy, the folkfinance has a rapid development, it also made great contributions to the development of ruraleconomy and private capital economy, greatly make up for the deficiency of the formalfinancial capital supply, easing the contradiction between capital supply and demand of market.However, on the contrary of its contribution, because the system is not sound, the law is notperfect, the risk coefficient is higher and so on, the folk financial organization activities by thestrict control of the country, the state of folk lending to financial regulation has taken thecontrol policy of suppression for a long time. The consequences of a strict control not onlyfailed to promote the healthy development of private financial, instead has caused a series ofproblems. Since the folk finance appears, it was free in the state macro-control and regulationof national financial authorities, make enterprises and financial institutions not know what todo, folk finance itself also is limited by the different levels of development.The main research question of this paper is to improve the development of Folk Financefinancial system, namely, to promote the healthy and orderly development of private finance.First, from under the background of the national economy, this paper discusses some problemsand the insufficiency in the folk financial development of China. Second, comparing with theformal financial, found a suitable financing scale, make the balance between them. Then drawlessons from other country about the folk financial development measures, to strengthen thefinancial development of market economy in our country. At last, standard the folk financialsystem, put forward feasible suggestions and countermeasures for the development of the folkfinance. Through draw lessons from other country’s measures and compared with the formalfinancial, to improve efficiency of the supply and supply level of financial intermediary in ourcountry, make the folk financial markets play a huge role in economic development, make ourcountry folk financial market development towards the direction of the sun. This paper described the background, purpose and object of study and methods, combingthe structural context of the article; elaborated the scholar’s research of definition andgeneration of folk finance, also include the development of folk finance; through research theforms of folk finance and the characteristics of induced institutional change, for someproblems existing in the folk finance, put forward the solution and suitable countermeasure orsuggestion for our country folk finance.The main innovation of this paper is to study the idea of innovation. Conduct research onfolk finance articles based on Western economic theory is not sufficient, the existing literatureoften from a legal perspective, government regulation, market operational aspects, rather thanin the domestic economy for comprehensive analysis on the development of folk financial andfolk financial system on our current environment, and then, based on this to put forward theoperational countermeasures and suggestions. In this paper, learn from the researchachievements of predecessors, on this basis, and based on the real condition of thedevelopment of the domestic economy, make the construction of the folk financial placed inthe process of deepening reform of economy in our country to study, grasp the deep-seatedcauses of the development of folk finance in general, promote national economic development,improve our market economy.