The Reseach Of Government Regulation To Informal Finace

After the reform and opening up, with the emergence of a large number of emerging industries, China’s small and medium-sized enterprise financing needs increased. In this context, the informal finance as a supplement to formal financial industry has been restored. When countries recognize the positive role of informal finance on economic development, liberalized policies to encourage private capital development, especially in 2004 the people’s Bank of China explained what is informal finance, all private financial intermediaries become unprecedented prosperity of the state. However due to China’s financial resources in a long period of time in the state of high centralization, informal finance in the traditional sense of the field by exclusion and suppression already exists abnormal development, policy liberalization in the use of private capital to promote the economic development at the same time, but also makes the informal financial market appeared "market failure" state, the current financial supervision system in our country is not reasonable regulation and management of informal finance, the informal finance free from outside of the financial regulatory system, outbreaks of informal financial market in environmental regulation is not perfect and even affect the area of formal financial market and the social order stability.The government has to face the existing problems in the informal financial market and begins a new round of governance.Government as a regulation maker and market night watchmen, has the responsibility and obligation to build and maintain a good informal financial environment. As the regulation maker, the government should establish a sound legal system,to provide informal financial markets a fair, just and open environment.As a night watchman, the government should effectively supervise in the informal financial market, including both the supervision and management of informal financial institutions, informal finance operation, and the informal financial institutions internal supervision, industry self-discipline supervision organizations and informal financial intermediaries.Taking Nanchong as an example, this research illustrates the importance ofinformal finance in the economy and society by operating mechanism of the main informal financial institutions,describing the scale of informal finance in Nanchong,and the present situation of the informal financial market. And then through the Nanchong’s government on the informal financial regulatory measures to reflect the current government in the informal financial regulatory problems. Finally, through the analysis of the reasons of the problems, put forward the government to informal financial supervision measures and suggestions, including: providing supporting laws and policies, establishing the subject and the regulatory department responsibility,strengthening the responsibility and professional knowledge education, in order to coordinate informal financial development and government regulation, using government intervention to solve the informal financial market failure.