Integrate Research Between China Rural Formal Finance And Informal Finance

China’s rural financial inefficiency, insufficient supply problems for manyreasons, the most important reason is that rural formal financial and non-formalbasic lack of financial integration, complementary strengths between the twoplays is not very good. From the time of the implementation of observation, tomake up for the inadequate supply of rural finance financial efficiency can beimproved by integrating both financial and non-formal rural finance betweenformal, but can also be found in significant integration between the two is still inits infancy today, did not get promoted. Therefore, an important issue in today’stheoretical research direction is how to further integrate both financial andnon-formal rural informal finance between. From the perspective of theoreticalanalysis, a detailed discussion of the dual financial theory, transaction costtheory and the theory of financial efficiency, focusing on analysis of thefeasibility and necessity of integration between finance both formal andnon-formal rural finance in. Finally, on the actual situation in China today, adetailed analysis of the integration of the two main methods, as well as the effectof the integration between the two analyzes. Studies have shown that both theformal financial integration between financial and non-formal framework forChina’s rural areas is now better, but the actual operation of very few still existsuch as constraints and conditions on the basis of this study, use game theory toanalyze the integration between the two can bring cost benefits and to integrateseveral methods which give an analysis of influencing factors. Through researchwe found that the integration between the two parties is the result of the selectedgame, because since the reform and opening up, both formal financial net incomeand non-formal financial support of the Government of China’s rural integrationis much larger than when unconformity Revenue brought; But consolidationaffected by many factors and conditions of the constraints between the two, suchas violations found after a fine trustees, trustees violations of regulatory agenciesto verify the probability of success, such as entrusted loans are restrictedmethods factors; integration costs and excess profits are constraints wholesaleloan consolidation pathway. Conditions and factors will integrate Taken together,there are four integrated model fit in our countryside promotion, namely: theintegration of leading enterprises and rural formal financial integration with thecompany’s security, integration, and small loan companies or professionalmoneylenders, and integration with the group financial or professional community integration. A variety of factors and conditions restricting theimplementation of bundling credit, and in rural areas to promote the agencyintermediary business, entrusted loans and wholesale loans three integratedmodel has some limitations. Finally, to promote among China’s rural finance bothformal and non-formal finance can smoothly integrate, integrate some of theproblems arising in the course suggested.