The Legal Regulation Of The Informal Finance In China Under The Background Of Globalization

For decades, private economy has injected new vitality into the economic development of our country, greatly promoted the development rapid of our economy, but its financial support from formal finance is very little. For a long time, informal finance effectively makes up for the deficiency of the formal finance, provides strong financial support for the private economy which creates more than 60% of GDP growth. At the same time, path dependence because of long adoption of financial repression policy, leads to the systemic inertia of cracking down on and banning the informal finance in our country, and the formal legal system regulation of informal finance is always in the state of absence. In recent years, informal finance is getting more and more active in the whole financial market, not only the size and scope expands, its form is also in constant innovation, the status of informal finance in the whole financial system has been more and more important. However, as the regional informal finance has been broken, the autonomous system its originally rely mainly on private credit and moral ethics as a foundation has been more and more weak, as a result, our country informal finance also lurks a certain financial risk at the time of fast development. Face up to the present, with the deepening of the financial globalization, foreign countries or regions have changed its financial legal system, in order to maximize the utility of the informal finance, in China, some provinces and cities such as Wenzhou, Shandong, Guangdong, Yunnan and other places also made valuable attempts to promote the development of informal financial standardization, and has obtained a good effect. Therefore, in the background of financial globalization, we should build a clear legal framework of regulation for our informal finance as soon as possible, in order to build a more inclusive financial system, strengthen the antiknock charactensitics of China’s economy.Besides preface and conclusion, the Master’s thesis consist of five parts.The first par: the overview of informal finance, which includes definition of the informal finance, its characteristics and the current situation of its development, and the difficulties which the informal finance is facing with basing on the analysis at present. The second part: the theoretical basis of the legal regulation of informal finance, proving the legitimacy and necessity of the legal regulation of informal finance from economics, political science and jurisprudence. The third part: realities of legal regulation of informal finance under the background of Globalization, basing on the financial security under the background of financial globalization as the perspective, analysis the requirements the financial globalization presents to our financial system, and analyzes the status quo and defects of legal regulation of informal finance of our country under the background of financial globalization, this is also the focus and difficulty of this article. The fourth part: the informal financial legal regulation practice and enlightenment in the region of inside and outside, mainly introduces the models of American Community Banks, Japan’s ROSCAs, Bangladesh Grameen bank and Taiwan’s ROSCA, and analyzes of the local regulation version of informal financial in Wenzhou, Shandong, Guangdong and Yunnan, concludes the enlightment of legal regulation to building our informal financial in the region of inside and outside finally. The fifth part: the path of the legal regulation of our informal finance under the background of Globalization, through the innovation concept of legal regulation and framework building of the system under the background of financial globalization, to eliminate the systemic inertia of financial repression policy, realizes the development of informal finance with standardization and legalization finally.