On Legal Regulation Of The Informal Financial Organizations In China

Informal financial organization in our country exists in the folk, play a positiverole in the financing of SMEs in the process, however, due to the impact of the lack ofrelevant legal and regulatory factors, lack of relevant supporting mechanism, thedevelopment of non formal finance organization in China encountered many obstacles,the financial system development lags behind the development of the nationaleconomy. With the Third Plenary Session of the eighteen victory is held, reform ofour country has already entered into the deep water area, the legal regulation of nonformal financial institutions will help to a considerable extent, the pace of reform togo forward. For our government is to implement the integration of urban construction,the informal financial organizations also play an irreplaceable role, because theinformal financial organizations in urban and rural junction to allow more people toaccept, play their own unique advantages can be more in promoting ruraldevelopment.Informal financial organization forms, in our country there are a money broker,underground banks, pawnshops, private equity fund, rotating savings and loanassociations form. Although the informal financial organization to solve the financingdifficulty of small and medium-sized enterprises to a great extent, but can not beavoided is informal financial organizations still exist many problems. In practice,because the Chinese government has long been the informal financial organizations inthe implementation of the financial restraint policy, make our country a lot of nonformal finance organization mostly with semi underground or ground state ofoperation, there are many problems in the prevention and control mechanism of riskmanagement. But when we found out that the informal finance organization at allcountries and regions in the world are booming, bring huge profits to local economicdevelopment, such as mentioned in this article America, Germany, Japan and Taiwanregion of China’s successful experience, therefore, we should actively learn from them,learn from their successful experience the. The legal regulation of non formal financial institutions because of different“national conditions” of various countries andareas and somewhat difference, after comparing and combining the situation of ourcountry, this paper mainly from the improvement of the relevant laws and regulations,establish the non formal financial institutions market access supervision system,establishment of informal financial organization and exit mechanism, establishself-discipline Association and regulate its own management mode to start, to create adiversified development of the financial market.