The Social Performance Study On Cooperation Between China’s Rural Formal Finance And Informal Finance

China’s rural financial organization system includes the formal finance andinformal finance, co-existence of both dual financial structure will develop in a longtime. Rural formal finance is relatively better than informal finance in the size offunds, organizational system, practitioners and risk control, which has the costadvantages of economies of scale in the provision of large long-term loans. But due tothe lack of flexible mechanisms and simple operation, formal finance is short ofinformation and guarantees advantage in the provision of small short-term loans. Thus,through cooperation between formal finance and informal finance to complementadvantages, which follows the important proposition in transition period of China’srural financial system. As a special financial form, social performance is the specificstrategic objectives of formal finance and informal finance cooperation. Through thesocial performance evaluation, the government can fully grasp information of formalfinance and informal finance cooperation, timely and effective regulate and guidecooperation behavior, motivate cooperation for sustainable development, thus ensurethe well-being of farmers increased, and achieve the purpose of promoting rural socialdevelopment.The dissertation starts with the symbiotic relationship between China’s ruralformal finance and informal finance, uses evolutionary game theory to analyze theinternal mechanism of cooperation as well as the key elements, and explainscooperation path mode. Combining social performance theory, the dissertationdetermines the effectiveness of cooperation and coordination, the effectiveness ofinformation disclosure, the effectiveness of informal finance protection and regionaldevelopment effectiveness for the four factors that influence the social performanceof formal finance and informal finance cooperation, and builds social performanceevaluation indicator system on that basis. Using AHP for empirical analysis of thesurvey data, the dissertation finds that the effectiveness of cooperation andcoordination has the highest wight, followed by the effectiveness of informationdisclosure, the effectiveness of informal finance protection and regional developmenteffectiveness, which also verified the scientific and effective of evaluation indicatorsystem. In order to investigate the specific problems in the practical applicationevaluation system, the dissertation selects the sample, measures its social performance, and compares with the highest lever, which finds that its socialperformance lies at the middle level, there is still much room for improvement.The above theoretical and empirical research gives revelation to enhance thesocial performance on cooperation between China’s rural formal finance and informalfinance. By strengthening publicity and paying attention to training to developwin-win cooperation cultural, improving multi-lever rural financial system andpromoting the market process of interest rates to improve rural financial environment,establishing monitoring and reporting system to improve financial regulatory system,which not only effectively enhance the social performance on rural formal finance andinformal finance cooperation, but also provide the basis of formulation funds andsupport policies and laws regulations for the government, thus play an important roleon promoting the sustainable development of rural formal finance and informalfinance cooperation.