Research On Government Regulation Of China 's Civil Financial Development

If the oil is the blood of modern industrial development, finance is the core of modern economy development. Financial market is not only an important factor of national economy stability and healthy development, but also an important factor of country’s economic security. A country’s financial stability development not only includes the formal financial system, but also includes free private finance which not involve in the formal financial system. Private financial is widespread accompanied with formal financial since time immemorial, whether in ancient or modern, developed countries or developing countries, its existence and development not only make up for the deficiency of the formal financial financing, provide capital for economic development, solve the small economies lending and financing needs in the developing process, and promote the development of economy, but also promote the formal financial system reform and improvement. Due to the influence of the planned economy system after the founding of new China, the private financial exist in gray identity in the process of long-term development. After the reform and opening-up policy, the private financial developed along with establishment and development of our country market economy system, and had positive effect on the non-public economic development in our country. The private financial plays an important role in the process of promoting China’s economic development. At the same time, due to the defect of the private finance itself, the low risk prevention consciousness of the masses and the inadequate government guidance and supervision for the private financial, the private financial brings many negative effects to the society; also bring many problems to economic development and social stability.This article first overview to the private financial development in China, analysis of private financial the rationality of the existence and development from the perspective of demand and supply, and then fully affirmed the positive role of private finance brings to the economic development on the basis of analyzing the characteristics and possible danger of the private financial activities. This article focuses on the way of government supervision on private financial development, and analysis of the advantages and disadvantages of the existing private financial supervision system and regulators. Combined with the analysis of today’s hot issues, and draw lessons from the successful private financial guide and standardize experience of other countries and regions, this article try to explore a private financial development guidance and supervision mode which conforms to our country, and put forward the policy suggestions to the benign development of private financial. The study found that the cause of the rapid development of private finance in China is the development of the market economy demand for private financial activities, the basis of disposable income increased year by year to the private financial development provides the capital source of supply, insufficient supply of formal financial institutions financing and financing channels restricted the obvious contradiction between supply and demand, and the private financing characteristic advantage to promote the development of the private financial activities. Private finance can ease the contradiction between supply and demand of funds, promote the effective allocation of financial capital resources, but it also may affect the orderly operation of financial markets, weaken the implementation effect of national macroeconomic regulation and control policy, problems exist in the government guide of the private financial development, such as the inadequate understanding of private financial, interest rate control is not reasonable, imperfect laws and institutions, supervision subject system is not sound, etc. go against the development of our country’s private finance, on the successful experience of private financial guide in western developed countries, and combined with practical experience of financial regulation in China, This article put forward some private financial regulatory policy suggestions such as improve laws and regulations to provide legal protection for the private finance development, improve the private financial supervision system, improve the private financlal supervision mode, pay attention to regulation effect evaluation. The suggestions are for reference to the government to guide and standardize the private finance development, and help the private finance make a greater contribution to promote social and economic development in our country.