Study On Dilemma And Path Of Reform Of Informal Finance

In recent years, economy, particularly private economy and "three rural" economy develop rapidly, demands for various funds are growing, and informal finance becomes more active as supplement of formal finance. But due to spontaneity and elusiveness of operation of informal finance, its implied risk also attracts more and more social attention. Hence, it makes an in-depth analysis of dilemma that informal finance met in the process of development and the reason so as to better implement supervision over informal finance. It is of great significance to guide it to maximize its role of supporting real economy.The paper carries on research centered upon several following aspects:first, it states the development status of Huzhou’s informal finance and analyzes the reason of its continuous existence. Second, it dissects dilemma and problems occurred in the transformation of informal finance from the comparison of legal system environment, supervision system between development of informal finance and competitive environment of formal finance, and four aspects of informal finance. Third, it designs specific path of reform to lead informal finance’s normative development, including formulating specialized laws and regulations for informal financing, implementing scientific and rational supervision system, establishing and completing relevant supporting mechanisms. The innovation of this paper perhaps lies in its taking Huzhou, Zhejiang as a sample, analyzing the status and dilemma of informal finance in regional economic development through solid evidence, researching on dilemma and path of reform in the development of informal finance, which is of strong theoretical and realistic significance.