The Supervision System Of Folk Finance In Our Country

Since the Reform and Opening-up, the Socialism Market Economy of China has developed rapidly. Folk finance, as an effective supplement for the inclusive finance system, meets the growing market demand, bringing about economic and social benefit. Recently, our folk finance has grown vigorously and at the same time it has caused a series of social issues.Opinions toward Folk finance and its fundamental regulation theories are divergent. According to the science of law, Folk finance naturally emerges in the economic activities and it includes a various of financing activities that are not under the control of the national financial law; In terms of the status quo of our market economy regulation, Folk finance supervision is a part of finance supervision, but it is different from formal finance supervision.Many reasons have contributed to the status quo of Folk finance and its regulation. Folk finance has developed inexorably in recent years. This is due to the rapid development of economy since the reform and opening up, the deficiency of traditional financial system and the conventional habits among people etc. At the same time, the lack of supervision system for Folk finance has exerted negative influence on financial security and the sustainable development of it.It is necessary to regulate Folk finance since it becomes increasingly prominent in the market economy. The development of our Folk finance stated later than that in America, Japan,Taiwan of China and other regions. Therefore, we should learn from them and establish the regulation system for our Folk finance to supervise the Folk finance activities, which will bring a far-reaching and positive impact on diversification and avoidance of the risk, protection of the legitimate rights and interests for consumers and security maintenance of the social economy.From theory to practice, the author try to formulate a beneficial supervision system for our folk finance which will have certain reference value for solving the existing problems of the folk finance.