Research On The Legal Regulation Of Folk Finance

With the development of society and economy, people’s life is getting richer andricher, business is booming, the rapid development of economic puts forward therequirement of the accumulation of funds and liquidity, a large number of idle funds likea volcano is looking for a breakthrough, however, in the rapid economic developmentin the background, China’s financing channel is unitary, even quite backward, still now,financial system there is no essential breakthrough, that consists of five largemonopoly who controls national financial, which led to the situation, five big bankssimply can not cope with and to meet the huge financing demand, especially in folk, thefinancing problems of small and medium-sized enterprises is severe. Because of thecosts and benefits, the five big banks tend to put the main funds to large enterprisesand state-owned enterprises, while ignoring small and medium enterprises. The numberof China’s small and medium enterprises accounted for more than99%of Chineseenterprises, so the so-called underground, new terms or financial market appears.This paper does not focus on the financial reform of our country, the mainobjectives of the study is legal regulation of the finance, from the legal perspective, torealize the folk financial misconduct correction and standardization, so as to guide itshealthy development. This paper focuses on the financial development and legalsystems of the countries in the world of financial model, secondly to make acomprehensive review of the Chinese financial system development, deeply analysesthe existing problems of China’s financial activities, as well as the corresponding legalloopholes, or the status of irrational excessive intervention, and finally puts forwardnew reform of legal regulation of private finance in china.The first part of the article mainly analyzes the financial and legal systems of theworld financial developed and sound legal system countries. Countries put forward theregulation policy that can adjust or develop their own financial crime, according todifferent circumstances in different historical periods and economic development.Thispaper mainly analyzes the system of making policy of the United States, Germany, andJapan, and make the contrast analysis with China, and analyze the historical and culturalbackground of each classic mode, realizing the advantages of each classic modeabsorption. Analyzing foreign mode is to put forward the ideas of reform of China’sfinancial system and legal progress, which is of great significance to promote the healthy development of China’s financial activities.The second part of the article mainly discusses the current situation of ourcountry’s financial market, and some existing problems, and analyze the rationality ofthe folk financial existence. Through foreshadowing and compared to the previousparagraph, obtains the real results that our country financial is monopoly and legal lag.This section is to put forward the reform ideas for the next chapter and to provide thesupport point of the theoretical starting point.The third part is the key part, which puts forward measures to reform the regulationof Chinese legal system on private financial activities, improves the legal system ofsmall and medium-sized enterprises in folk financing, builds and adapts the folkfinancing channels, improves the supervision mechanism of the small andmedium-sized enterprise financing, so as to cultivate a healthy folk financing platform,realize that the law should play a key role of guaranteeing the healthy development ofChina’s financial activities.